Contracts
In Rhode Island, when an offer contains a 'time is of the essence' clause, failure to close on the specified date may allow the non-defaulting party to:
AAutomatically extend the closing date by 30 days
BTreat the contract as terminated and pursue legal remedies✓ Correct
CReduce the purchase price
DOnly seek mediation
Explanation
When a contract contains a 'time is of the essence' clause, the specified deadline is an absolute condition. Failure to perform by that date allows the non-defaulting party to treat the contract as terminated and pursue available legal remedies.
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