Contracts
An Oregon purchase agreement states the closing date is June 15. The parties have not included a 'time is of the essence' clause. What is the effect?
AThe June 15 date is an absolute deadline
BThe date is a target, and a reasonable delay may not constitute a breach✓ Correct
CThe contract is automatically void if closing does not occur on June 15
DThe seller may unilaterally change the closing date
Explanation
Without a 'time is of the essence' clause, a stated closing date is generally treated as a target, and courts may allow a reasonable additional period for performance. A modest delay alone may not constitute a material breach. However, best practice is to include the clause if strict date compliance is important to either party.
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