Time Is Of The Essence Meaning Law

The modern view held by most courts is that a party s failure to meet the conditions of a time is of the essence provision amounts to a material breach of the contract.

Time is of the essence meaning law. Time is of the essence law and legal definition. This has been interpreted to mean that such a date is an approximate target and not necessarily the precise date on which the closing will occur. A repudiatory breach is a breach so fundamental that it is a ground not only for damages but also for termination of an agreement. And alternatively most courts will not consider the timing as crucial if this language is left out.

In such cases it is important to include a provision in the contract establishing a specific deadline as well as the consequences for failing to meet the deadline. Time is of the essence is the concept that should the terms of a contract not be met by a specific deadline one or more parties could be negatively impacted. Statutory law provides that absent express language stating that time is of the essence performance can be made after the due date provided the other party is properly compensated for the delay. Making the date specified for a real estate closing of the essence is a time honored tool.

Civil code section 1492 states. Failure to act within the time required constitutes a breach of the contract. A phrase in a contract that means that performance by one party at or within the period specified in the contract is necessary to enable that party to require performance by the other party. Unless the contract specifically states the date is time of the essence both parties are entitled to a reasonable adjournment.

It is a doctrine that has evolved over time without a concrete set of rules. If the party fails to complete the required task on time it is regarded as a breach of contract. A time of the essence clause creates a hard deadline meaning that any deviation from the contractual time limit for performance will lead to a repudiatory breach. Time is of the essence clause in real estate contracts refers to a clause that requires one party in a real estate contract to fulfill his or her obligations within a certain time frame.

The general rule is that time is not of the essence unless the contract expressly so provides. If the parties don t include a time is of the essence clause a reasonable time for performance will be implied if a problem arises as to any timing issue. Time is of the essence.