Contracts
A Texas contract states 'time is of the essence' for all deadlines. The buyer misses the financing deadline by one day. The seller:
AMust automatically extend the deadline by 5 days
BMay treat the missed deadline as a breach and terminate the contract if they choose✓ Correct
CHas no remedy since one day is de minimis
DMust notify TREC of the breach
Explanation
When a contract states 'time is of the essence,' all deadlines are material terms. Missing a deadline — even by one day — can constitute a breach giving the non-defaulting party the right to terminate and pursue remedies, unless the parties agree to a modification.
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