What is the significance of a contract clause stating that "time is of the essence?"
A) It creates a legal goal for the parties.
B) It puts a duty on the parties to a contract to perform as soon as possible.
C) It means that the contract is ineffective if the time for performance is not expressly stated.
D) It means that performance by the stated time is an express condition.
E) It means that if performance of the contract is completed within a short time of the stated time, it will be considered performed at essentially the proper time.

Question

Quizplus · Accepted Answer

A clause stating that "time is of the essence" means that performance by the stated time is an express condition. If a party fails to perform by the stated time, they could be in breach of the contract and be subject to legal remedies or be deemed to have withdrawn from the agreement. This clause is often used in contracts where timely performance is critical, such as in real estate transactions or construction contracts.

What Is the Significance of a Contract Clause Stating That