Contracts

In NJ real estate law, 'time is not of the essence' in a contract without such a clause means:

AThere are no deadlines
BA reasonable delay beyond the closing date does not automatically constitute a material breach—the non-defaulting party must demand performance within a reasonable time✓ Correct
CEither party may close at any time within one year
DThe NJREC sets the closing date

Explanation

Without a 'time is of the essence' clause, NJ courts require reasonable delay tolerance. A party cannot terminate solely because the other missed the stated closing date; they must make a formal demand with a reasonable deadline before declaring a default.

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