Contracts

What is a 'time is of the essence' notice in the context of a defaulting party?

AA courtesy reminder of upcoming deadlines
BA formal notice making all remaining deadlines strict after a party failed to perform timely✓ Correct
CA notice that a contract is expired
DAn automatic contract termination

Explanation

When a party fails to perform on time in a contract without a time-of-essence clause, the non-defaulting party can send a 'time is of the essence' notice, giving the defaulting party a short, specific deadline to perform, after which the contract can be terminated.

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