Contracts

A Vermont real estate purchase contract that contains a time-is-of-the-essence clause means:

AThe contract must be completed within 30 days by law
BContractual deadlines are strictly enforced and missing them may result in default✓ Correct
CThe parties must complete the transaction as quickly as possible
DThe seller has the right to accelerate the closing date

Explanation

A time-is-of-the-essence clause makes contract deadlines material terms. Missing a deadline — such as the closing date or contingency removal date — may constitute a default, entitling the non-defaulting party to declare the contract terminated.

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