Contracts
In a Massachusetts Purchase and Sale Agreement, a 'time is of the essence' clause means:
AThe parties have unlimited time to extend deadlines
BDeadlines in the contract are strictly enforceable and failure to perform by the deadline is a breach✓ Correct
COnly the seller can enforce the deadline
DThe clause applies only to the closing date
Explanation
A 'time is of the essence' clause makes all contract deadlines strictly enforceable. Missing a deadline—such as the mortgage contingency date or closing date—constitutes a material breach of contract.
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