Time Is of the Essence
Deadlines are strict terms — missing one can be a serious breach.
What it means
A 'time is of the essence' clause makes the contract's deadlines strict, material terms rather than approximate targets. With it, missing a deadline — even briefly — can amount to a material breach that lets the other side terminate or claim damages. Without it, courts often treat reasonable delays more forgivingly.
Why it matters before you sign
Five ordinary words that turn every date in the contract into a hard commitment — make sure each deadline near this clause is one you can genuinely meet.
In a contract, it looks like this
Time is of the essence with respect to the closing date and each payment deadline in this agreement.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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