Contracts
A New Mexico real estate contract contains a 'time is of the essence' clause. This means:
AThe closing date can be extended at will
BAll deadlines in the contract are strictly enforceable and failure to meet them may constitute a material breach✓ Correct
CInspections must be completed within 24 hours
DThe contract expires in 30 days
Explanation
A 'time is of the essence' clause makes all deadlines in the contract strict conditions. Failure to perform by any deadline — inspection, financing, closing — may constitute a breach allowing the non-defaulting party to terminate and seek remedies.
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