A Massachusetts purchase and sale agreement includes a time-is-of-the-essence clause for the closing date of March 15. The buyer fails to appear at closing on March 15 without notifying the seller or requesting an extension. The seller waits until March 20 before declaring the buyer in default and retaining the deposit. Under Massachusetts law, which statement best describes the effect of the time-is-of-the-essence clause?

Question

ContractsBreach_and_remediesMEDIUM

A Massachusetts purchase and sale agreement includes a time-is-of-the-essence clause for the closing date of March 15. The buyer fails to appear at closing on March 15 without notifying the seller or requesting an extension. The seller waits until March 20 before declaring the buyer in default and retaining the deposit. Under Massachusetts law, which statement best describes the effect of the time-is-of-the-essence clause?

Answer Options

A

The time-is-of-the-essence clause is unenforceable in Massachusetts because courts routinely grant buyers a reasonable grace period after a missed closing.

B

The time-is-of-the-essence clause makes the closing date a material term, so the buyer's failure to close on March 15 constitutes an immediate breach entitling the seller to declare default.

C

The time-is-of-the-essence clause only applies to the seller's obligations, not the buyer's, so the buyer may close within a reasonable time after March 15.

D

The seller waived the time-is-of-the-essence clause by waiting five days before declaring default, so the buyer has additional time to close.