Contracts

In Michigan, a 'time is of the essence' clause is most commonly inserted to:

AGive both parties unlimited time to perform
BMake all deadlines in the contract strictly enforceable and non-extendable✓ Correct
CProtect the seller from closing delays
DAllow the buyer to close early

Explanation

When a 'time is of the essence' clause is included in a Michigan purchase agreement, all deadlines (inspection period, financing contingency, closing date) become strictly enforceable. Failure to meet a deadline may constitute a breach even if only one day late.

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