Contracts

A Vermont purchase contract includes a 'time is of the essence' clause. This means:

AThe parties can extend deadlines freely without consequence
BAll contractual deadlines are strict and failure to perform by the specified date constitutes a breach✓ Correct
COnly the closing date is fixed; all other dates are flexible
DThe clause applies only to the buyer, not the seller

Explanation

A 'time is of the essence' clause makes all contract deadlines strict. Failure by either party to perform by the specified date is a material breach, potentially allowing the non-breaching party to terminate the contract and seek remedies.

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