Contracts

In South Carolina, which of the following best describes 'time is of the essence' in a real estate contract?

AThe contract automatically extends if deadlines are missed
BDeadlines in the contract are strictly enforced, and missing them may constitute a breach✓ Correct
CThe phrase applies only to the closing date, not other deadlines
DIt only applies to commercial transactions

Explanation

When 'time is of the essence' is stated in a contract, all deadlines are strictly enforced. Failure to meet a deadline—such as the closing date or due diligence period—can constitute a material breach allowing the other party to terminate.

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