Contracts

Under Maine contract law, 'time is of the essence' in a real estate contract means:

AEither party can extend closing indefinitely
BDeadlines in the contract are mere guidelines
CFailure to perform by the stated date is a material breach✓ Correct
DThe contract expires after one year automatically

Explanation

When a contract states 'time is of the essence,' all deadlines are strictly enforced. Failure to perform by the stated date constitutes a material breach of contract.

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