Contracts
An Oklahoma real estate contract provision stating 'time is of the essence' means:
AThe parties have unlimited time to perform but prefer speed
BDeadlines in the contract are strictly binding; failure to perform by the specified dates may constitute a material breach allowing the other party to cancel and seek damages✓ Correct
CDates are guidelines that can be extended informally
DOnly the closing date is strictly binding
Explanation
A 'time is of the essence' clause makes all dates and deadlines in the contract strictly binding. Missing a deadline — whether for inspection, financing approval, or closing — may be treated as a material breach, potentially allowing the non-breaching party to cancel and keep earnest money or sue.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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