Mary tells her accountant, "I must have this year's audit completed by March 1, and time is of the essence." The accountant agrees to complete the audit by March 1. Under general contract law, if the audit is not completed by March 1, Mary does not have to pay the accountant for the audit.

Question

Quizplus · Accepted Answer

Under general contract law, when "time is of the essence" is stated, it means that timely performance is a critical part of the contract. If the accountant fails to meet the deadline, it constitutes a breach, and Mary may not be obligated to pay.

Mary Tells Her Accountant, "I Must Have This Year's Audit