Contracts
What does 'time is of the essence' mean in a real estate contract?
AThe contract has no fixed deadline
BDeadlines in the contract are strict, and failure to meet them constitutes a material breach✓ Correct
CThe parties have 30 days to close after the contract is signed
DThe seller must vacate the property immediately
Explanation
'Time is of the essence' means that the deadlines stated in the contract are material terms. Failure to meet a deadline (such as the closing date) constitutes a breach of contract, which may allow the non-breaching party to terminate the contract or seek damages.
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