Contracts

In NH, the 'time is of the essence' clause in a purchase and sale agreement means:

AThe parties should try to meet deadlines when convenient
BAll deadlines in the contract are strict and failure to meet them may constitute a material breach✓ Correct
COnly the closing date is a firm deadline
DThe parties have up to 7 days after any deadline to perform

Explanation

A 'time is of the essence' clause makes all contractual deadlines strict and material. Failure to perform by the stated dates can constitute a material breach, potentially allowing the non-breaching party to terminate the contract and pursue legal remedies.

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