Contracts
The time is of the essence clause in an Oregon real estate contract means:
AThe parties should try to close as quickly as possible
BDeadlines in the contract are strictly enforceable — missing a deadline is a breach of contract✓ Correct
CThe contract automatically expires if not closed within 60 days
DThe broker must be available at all times during the transaction
Explanation
A 'time is of the essence' clause makes contract deadlines strictly enforceable. Missing a deadline — even by one day — can constitute a material breach entitling the other party to remedies (including termination). Oregon purchase agreements typically include this provision for closing dates, contingency deadlines, and notice periods. Without this clause, courts may allow reasonable delays. With it, courts generally hold parties strictly to the specified dates.
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