Contracts
A Minnesota purchase agreement contains a 'time is of the essence' clause. What does this mean for the parties?
AThe transaction must close in 30 days or less
BAll deadlines in the contract are strictly enforced✓ Correct
CEither party can extend deadlines without consent
DThe contract automatically renews if a deadline is missed
Explanation
A 'time is of the essence' clause in a Minnesota contract makes all deadlines strictly binding. Missing a deadline can constitute a breach of contract. Courts take this language seriously. Minnesota purchase agreements commonly include this clause for closing dates and contingency periods, ensuring parties perform on schedule.
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