Contracts
In a real estate purchase contract, 'time is of the essence' means:
AThe parties have unlimited time to close
BDeadlines in the contract are enforceable and failure to meet them can constitute a breach✓ Correct
COnly the purchase price deadline is strictly enforced
DThe parties must use their best efforts to close quickly
Explanation
A 'time is of the essence' clause makes all contract dates and deadlines strictly enforceable. Failure to meet a deadline — such as the closing date or contingency removal date — can constitute a material breach of contract.
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