Contracts

In a South Dakota real estate transaction, 'time is of the essence' language in the contract means:

AThe transaction must close within 30 days by law
BDeadlines specified in the contract are strictly enforceable, and failure to perform on time may constitute breach✓ Correct
CThe seller must respond to offers within 24 hours
DAll inspections must be completed within 7 days

Explanation

When a contract contains 'time is of the essence' language, all specified deadlines are strictly enforceable. Missing a deadline — such as the closing date or a contingency deadline — may constitute a material breach of contract.

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