A buyer and seller in Sheridan, Wyoming execute a purchase agreement for a residential property. The agreement does not include a specific closing date but states that closing will occur 'within a reasonable time.' Thirty days after signing, the seller demands closing within 48 hours or they will declare the buyer in default. The buyer is not yet ready to close. Under Wyoming contract principles, which statement is most accurate?
Correct Answer
D) The seller cannot unilaterally set a 48-hour deadline without first making time of the essence through proper written notice
When a contract specifies closing within 'a reasonable time' rather than a fixed date, time is not automatically of the essence. Before a party can declare the other in default for failure to close, the aggrieved party must make time of the essence through a proper written notice that gives the other party a reasonable period (typically 30 days or as specified) to perform. The seller's unilateral 48-hour ultimatum without prior written notice making time of the essence is not sufficient to put the buyer in default under Wyoming contract principles.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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