In Michigan, time is of the essence means:

Deadlines are not flexible when time is of the essence. This misconception confuses the common understanding of time being important with the specific legal meaning of 'time is of the essence,' which creates strict enforcement of deadlines.

While the closing date is important, time is of the essence applies to all contract dates and deadlines, not just closing. This option incorrectly narrows the scope of the concept.

Extensions are not automatic when time is of the essence. In fact, strict adherence to deadlines means extensions require mutual agreement and formal documentation.