Contracts
Under a TREC contract, 'time is of the essence' means:
AThe closing date is approximate and can be extended without penalty
BAll deadlines in the contract must be strictly met or a party may be in default✓ Correct
CThe option period can be extended at the buyer's request
DOnly the closing date is a firm deadline
Explanation
When a contract specifies that 'time is of the essence,' all dates and deadlines are strict and material. Failure to meet a deadline (such as delivering earnest money, the option fee, or meeting a contingency) may constitute a breach of contract and could result in the non-defaulting party's right to terminate or seek damages.
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