Contracts

What is the significance of the phrase 'time is of the essence' in real estate contracts?

AThe parties must meet quickly
BAll deadlines are strictly enforced and failure to meet them is a material breach✓ Correct
CThe contract must be performed within 30 days
DIt requires quick responses to all notices

Explanation

When a contract states 'time is of the essence,' all deadlines become firm commitments. Failure to perform on the exact date specified is a material breach, entitling the non-breaching party to remedies without additional notice.

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