Contracts
A Massachusetts Purchase and Sale Agreement states the closing date as 'on or before June 30.' Without a 'time is of the essence' clause, a party who is ready to close on June 29 but the other party cannot close until July 3 would generally:
ABe in immediate default
BHave a reasonable period to close after the stated date✓ Correct
CAutomatically receive a 30-day extension
DForfeit their deposit
Explanation
Without a 'time is of the essence' clause, Massachusetts courts generally allow a reasonable period after the stated closing date for the parties to complete the transaction. The stated date becomes a target rather than an absolute deadline. Only with a time is of the essence clause is strict adherence required.
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