Contracts
A NJ real estate sales contract clause that states 'time is of the essence' means:
AThe parties should try to close quickly but flexibility is expected
BAll deadlines in the contract are strictly enforceable, and failure to meet a deadline may constitute a breach✓ Correct
COnly the closing date is fixed; other dates are approximate
DThe contract automatically renews if not performed on time
Explanation
When a contract states 'time is of the essence,' all deadlines become strictly binding. A party who fails to perform on the exact date specified may be in breach. Courts enforce such clauses strictly, unlike contracts without this language where reasonable delays may be tolerated.
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