Contracts
A Mississippi purchase contract includes a 'time is of the essence' clause. The buyer misses the closing date by one day due to a bank processing delay. The seller may:
ANot enforce the deadline since one day is immaterial
BDeclare the buyer in default and retain the earnest money✓ Correct
CAutomatically grant a 30-day extension
DOnly sue for actual damages
Explanation
When 'time is of the essence' is expressly stated in a contract, contractual deadlines are strictly enforced. Missing the closing date by even one day can constitute a material breach allowing the seller to retain earnest money.
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