Contracts
A Rhode Island purchase agreement contains a 'time is of the essence' clause. This means:
AClosing can be delayed indefinitely if both parties agree
BThe closing must occur on the exact date specified, and failure to close is a material breach✓ Correct
CThe buyer has extra time to secure financing after the stated closing date
DThe seller must accept any offer within 24 hours
Explanation
A 'time is of the essence' clause means that the dates in the contract are strictly binding. Failure to perform on the specified date is a material breach, potentially allowing the other party to declare the contract void and pursue remedies.
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