Contracts

A Virginia real estate contract contains a 'time is of the essence' clause. This means:

AThe closing date may be extended with verbal agreement
BDeadlines in the contract are strict and failure to perform on time is a material breach✓ Correct
CThe contract will automatically terminate if not closed within 90 days
DThe buyer has a 3-day right of rescission

Explanation

A 'time is of the essence' clause makes all deadlines in the contract strict. Failure to perform by the specified date constitutes a material breach, potentially forfeiting the buyer's earnest money deposit.

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