Contracts
A Texas contract provision stating that 'time is of the essence' means:
AThe transaction must close within 30 days by state law
BDeadlines in the contract are material terms and failure to meet them is a breach✓ Correct
CThe agent must work full-time on the transaction
DBoth parties must sign on the same day
Explanation
A 'time is of the essence' clause makes all contract deadlines (closing date, option period, financing contingency) material terms. Failure to meet a deadline can constitute a breach that gives the other party the right to terminate and seek remedies.
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