Contracts

A purchase agreement contingency in Louisiana that 'time is of the essence' means:

AThe transaction must close quickly for tax reasons
BDeadlines in the contract are strictly enforceable and failure to meet them is a material breach✓ Correct
CThe parties can extend any deadline with verbal agreement
DThe seller must vacate the property immediately upon signing

Explanation

When a Louisiana contract states 'time is of the essence,' deadlines are strictly enforceable. Failure to meet a deadline is a material breach of contract, which may allow the non-breaching party to terminate the agreement.

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