Contracts
In Tennessee, a 'time is of the essence' clause in a purchase agreement means:
AClosing can be extended at either party's convenience
BContract deadlines are strictly enforced and missing them may constitute a breach✓ Correct
CThe contract expires after 90 days automatically
DThe seller must accept any offer within 24 hours
Explanation
A 'time is of the essence' clause makes all contract deadlines strictly enforceable. Failure to meet a deadline can constitute a material breach, potentially allowing the other party to rescind the contract.
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