Contracts
What is the legal effect of time being 'of the essence' in a North Carolina real estate contract?
AThe closing date is merely a suggestion
BBoth parties must strictly perform by the stated deadline or be in breach✓ Correct
CThe seller may extend the closing date without penalty
DThe buyer has an automatic 10-day extension period
Explanation
When time is of the essence, all parties must strictly adhere to the deadlines stated in the contract. Failure to perform by the specified date constitutes a material breach of contract.
Related North Carolina Contracts Questions
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