Under New York law, what is the legal significance of the 'time is of the essence' clause in a real estate contract?
Correct Answer
A) Contract deadlines become strictly enforceable with no automatic extensions
When 'time is of the essence' is included in a New York contract, all specified deadlines become strictly enforceable. Failure to meet any deadline can constitute a material breach allowing the non-breaching party to terminate the contract or seek other remedies.
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Previous Question
A purchase contract in New York includes a mortgage contingency clause stating the buyer must obtain a commitment for an 80% LTV conventional loan at 7.5% interest within 30 days. The buyer obtains a commitment for an 80% LTV loan at 8.0% interest. The seller demands the buyer proceed with closing. Which statement is correct?
Next Question
David signs a purchase contract for a New York property on Monday. His attorney reviews the contract on Wednesday and finds several objectionable terms. The contract includes a 3-business-day attorney approval contingency. When is the latest David's attorney can disapprove the contract?