Contracts

In Maine, a purchase and sale agreement may include a 'time is of the essence' clause, which means:

AThe parties must act quickly but deadlines are flexible
BFailure to meet contract deadlines can constitute a breach✓ Correct
CThe seller can extend the closing date at will
DThe buyer has unlimited time to obtain financing

Explanation

A 'time is of the essence' clause makes contract deadlines strict and enforceable. Failure to perform by the specified date can constitute a material breach of contract.

Related Maine Contracts Questions

Practice More Maine Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Maine Quiz →