Contracts

The term 'time is of the essence' in a real estate contract means:

AThe contract expires after 30 days automatically
BDeadlines specified in the contract are strictly enforceable and failure to meet them is a material breach✓ Correct
CParties may extend any deadline with verbal consent
DOnly the closing date is fixed; all other dates are approximate

Explanation

'Time is of the essence' makes all contractual deadlines strictly enforceable. Missing a deadline (such as the closing date) when this clause is present may constitute a material breach allowing the other party to cancel the contract.

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