Contracts

A Pennsylvania Agreement of Sale clause stating 'Time is of the essence' means which deadline is most critical?

AOnly the closing date matters
BAll dates and deadlines in the agreement are material and must be strictly observed✓ Correct
COnly the inspection period deadline is strict
DOnly deadlines set by PREC regulations apply

Explanation

A 'time is of the essence' clause makes every deadline in the contract material — inspection periods, mortgage commitment dates, contingency removal dates, and the closing date. Missing any deadline without written extension is a potential material breach entitling the non-breaching party to remedies.

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