Contracts
What is the legal effect of a 'time is of the essence' clause in a Pennsylvania real estate contract?
AThe contract expires if not closed within 30 days regardless of the agreed date
BAll deadlines in the contract are strict, and missing a deadline may constitute a material breach✓ Correct
CThe seller may terminate for any delay without notice
DThe buyer must waive their inspection contingency to accelerate closing
Explanation
A 'time is of the essence' clause makes all contractual deadlines strict and material. In Pennsylvania, failing to meet a time-of-the-essence deadline (closing, contingency removal, inspection response) may constitute a material breach, allowing the non-breaching party to terminate and seek remedies.
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