The Essence of Time is of the Essence


Often, contracts contain deadlines for performance – delivery, payment, closing, etc. What happens when the time for performance comes and goes?

If the contract contains the words “time is of the essence,” it means meeting the deadline is essential and required in the contract. If this clause is in the contract, there is no leeway for performance and the non-performing party is in breach.

If there is no ‘time is of the essence’ clause, the party has a “reasonable” time to perform. What is reasonable is often hard to determine, and will depend on the complexity of the transaction, customs in that particular industry, history between the parties, and other facts.

Featured Posts
Recent Posts
Archive
Search By Tags
Subscribe To and Follow Direct Talk
RSS Feed

© 2016 by Legal Direction®.  All Rights Reserved. 

  • email flat icon, christmas button, post sign _edited.jpg
  • LinkedIn App Icon
  • Google+ Classic
  • c-facebook
  • Twitter Classic