Contracts
In Rhode Island, the 'time is of the essence' clause in a purchase and sale agreement means:
AThe parties should try to close as soon as possible
BDeadlines in the contract are strictly enforced and failure to perform on time may constitute a breach✓ Correct
CThe seller can extend the closing date without penalty
DThe buyer has 30 days after the closing date to complete the transaction
Explanation
A 'time is of the essence' clause makes all deadlines in the contract strict and binding. Failure to perform on or before the specified date can constitute a material breach of contract.
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