Contracts
In NC real estate, 'time is of the essence' in a contract means:
AThe parties must close the transaction within 24 hours
BAll deadlines in the contract are strict and must be met exactly or the non-performing party is in default✓ Correct
CEither party can extend any deadline by mutual agreement only
DOnly the closing date is critical; other dates are flexible
Explanation
When a contract specifies that 'time is of the essence,' all contractual deadlines are strictly enforced. Failure to perform by any specified date is a material breach, entitling the non-defaulting party to contractual remedies.
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