A Florida purchase agreement contains a 'time is of the essence' clause. The buyer's lender delays the loan approval, causing the buyer to miss the closing date by 2 days. What is the likely legal outcome?
Correct Answer
B) The seller can declare the buyer in default and keep the deposit
Correct: B - With a 'time is of the essence' clause, deadlines are strictly enforced. Missing the closing date is a material breach allowing the seller to declare default. Why not A: There's no automatic extension with this clause. Why not C: No automatic extension applies. Why not D: The buyer in breach cannot force performance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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Under Florida law, all of the following would make a real estate purchase agreement voidable EXCEPT:
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A married couple in Florida is purchasing a home. The husband signs the purchase agreement, but the wife refuses to sign. The property will be their homestead. Under Florida law, what is the status of this contract?