Contracts
A 'time is of the essence' clause in a Montana real estate contract means:
AClosing must occur within 30 days regardless of financing
BAll specified deadlines in the contract are strictly binding and failure to meet them is a material breach✓ Correct
CThe contract expires after 90 days automatically
DThe seller must accept or reject within 24 hours
Explanation
A 'time is of the essence' clause makes all contract deadlines strictly binding. Missing a deadline—such as a closing date—constitutes a material breach, potentially allowing the other party to cancel.
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