Contracts
What does 'time is of the essence' mean in a real estate contract?
AThe deal must close as quickly as possible
BAll deadlines in the contract must be strictly met, and failure to meet them constitutes a breach✓ Correct
CThe parties should act in good faith
DThe closing date can be extended by oral agreement
Explanation
When a contract states 'time is of the essence,' all deadlines must be strictly adhered to. Failure to meet a deadline can constitute a breach of contract and may give the non-breaching party the right to terminate.
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