Contracts

A NH purchase agreement clause states 'time is of the essence with respect to the closing date of June 15.' If the buyer is ready to close but the seller requests a 2-day extension, the buyer may:

AMust grant the extension as it is only 2 days
BAgree to the extension in writing, or refuse and treat the seller's failure as a material breach✓ Correct
CAutomatically receive a price reduction
DTerminate the contract and keep the earnest money as damages

Explanation

When 'time is of the essence,' all deadlines are strict. The buyer may choose to grant a short extension by mutual written agreement or may treat the seller's failure to close on the contractual date as a material breach, entitling the buyer to exercise remedies under the contract.

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