Contracts

In Oregon, what does the term 'time is of the essence' mean when included in a purchase agreement?

AThe closing must occur within 30 days
BContract deadlines are strict and a failure to meet them may constitute a breach✓ Correct
CThe seller may extend all deadlines at their discretion
DThe appraisal contingency period is shortened

Explanation

When a contract includes a 'time is of the essence' clause, all deadlines and dates in the contract are strict. Missing a deadline — such as a contingency removal date or closing date — can constitute a material breach of contract, potentially allowing the non-breaching party to terminate and seek remedies.

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