When a contract contains the words "time is of the essence," which of the following is true?
A)Performance must be rendered within a reasonable amount of time.
B)Performance on the exact date is deemed vital.
C)Performance must occur within 24 hours of signing the contract.
D)Performance is not an essential component of the contract.

Question

When a contract contains the words "time is of the essence," which of the following is true?  ​
A)Performance must be rendered within a reasonable amount of time.
B)Performance on the exact date is deemed vital.
C)Performance must occur within 24 hours of signing the contract.
D)Performance is not an essential component of the contract.

Quizplus · Accepted Answer

When a contract specifies that "time is of the essence," it means that performance by the specified date is considered critical and mandatory, emphasizing the importance of adhering to the agreed-upon timelines.

When a Contract Contains the Words "Time Is of the Essence