Contracts

A South Dakota purchase agreement has a 'time is of the essence' clause. This means:

AThe parties must close within 24 hours of signing
BDeadlines in the contract are strictly enforced and missing them may constitute breach✓ Correct
CThe agreement expires automatically if not closed within 30 days
DThe property must be sold to the first buyer who makes an offer

Explanation

A 'time is of the essence' clause means that all dates and deadlines in the contract are strictly binding. Missing a deadline may constitute a material breach, potentially voiding the contract.

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