Contracts

A Mississippi purchase contract states that 'time is of the essence.' This phrase means:

AThe closing date may be extended by mutual agreement only
BAll deadlines in the contract must be strictly adhered to✓ Correct
CThe transaction must close within 30 days
DThe buyer must respond to all requests within 24 hours

Explanation

'Time is of the essence' means that the deadlines specified in the contract are material terms. Failure to meet a deadline can constitute a breach of contract.

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