Contracts
In New York, the 'time is of the essence' clause in a real estate contract means:
AThe transaction should be completed as quickly as possible, but delays are acceptable
BStrict adherence to the specified dates (such as the closing date) is required; failure to perform on the date specified is a material breach✓ Correct
CThe contract expires automatically after 30 days if not closed
DThe seller may extend the closing date unilaterally
Explanation
A 'time is of the essence' clause in a New York real estate contract makes dates strict and material. If a party fails to perform by the specified date (e.g., closing), that failure is a material breach of contract, potentially allowing the other party to declare the contract terminated and pursue remedies.
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