Contracts
In New York, a 'time is of the essence' clause in a real estate contract means:
AThe seller must accept any offer within 24 hours
BClosing must occur on the specified date or the defaulting party may face legal consequences✓ Correct
CThe buyer has 30 days to conduct inspections
DThe listing agreement automatically expires after 90 days
Explanation
A 'time is of the essence' clause makes the closing date a strict contractual deadline. Failure by either party to close on the specified date constitutes a breach, exposing the defaulting party to legal remedies.
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