A Wisconsin purchase agreement specifies a closing date of March 15. On March 10, the buyer's lender notifies the buyer that the appraisal is delayed and closing cannot occur until March 22. The seller refuses to extend the closing date. Under Wisconsin law, what is the likely status of the contract?
Correct Answer
D) Whether the buyer is in default depends on whether time was made of the essence in the contract.
Under Wisconsin contract law, whether a missed closing date constitutes a breach depends on whether 'time is of the essence' was expressly stated in the contract. If the contract does not contain a time-is-of-the-essence clause, a reasonable delay may not automatically constitute a breach, and courts may allow a reasonable extension. If time was made of the essence, missing the closing date would be a material breach. The WB-11 form's specific language on this point governs the outcome.
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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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