Contracts

In Montana real estate contracts, 'time is of the essence' language means:

AThe parties should try to close as soon as possible
BDeadlines in the contract are mandatory and failure to perform on time constitutes a material breach✓ Correct
CClosing can be extended by verbal agreement without penalty
DThe phrase has no legal significance in Montana

Explanation

When a Montana contract includes 'time is of the essence,' all performance deadlines become strict requirements. Failure to meet any deadline constitutes a material breach, giving the non-breaching party the right to terminate the contract and pursue remedies.

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