A Missouri purchase agreement is signed on June 1 with a closing date of July 15. The contract states 'time is of the essence.' On July 15, the buyer requests a one-week extension due to a delay in receiving loan documents. The seller refuses and declares the buyer in default. The buyer argues the delay was minor and the seller should be required to close. Under Missouri law, which statement is most accurate?
Correct Answer
D) The seller may declare default because the 'time is of the essence' clause makes the closing date a strict contractual condition
Under Missouri contract law, a 'time is of the essence' clause makes the specified deadline a material term of the contract. When such a clause is included, failure to perform by the exact date constitutes a breach, and the non-defaulting party (here, the seller) is entitled to declare the other party in default without granting additional time. Missouri courts enforce 'time is of the essence' provisions strictly, meaning the seller's refusal to extend and declaration of default is legally justified.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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