TIME IS OF THE ESSENCE

Other Names: Time • Time of Essence • Time is of the Essence • Timeliness

Sample Clause Language:

Time is of the essence of [PARTY B]’s obligations under this Agreement. [PARTY A shall have the right to treat all time deadlines contained in this Agreement as material and to terminate this Agreement or exercise such other remedies as may be provided in this Agreement in the event such time deadlines are not met.]

Source: Lexington Realty Trust (2018, September 5). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml

 

Description:

Time is of the Essence clauses make meeting deadlines or performing on time an important aspect of the agreement. They often make failures to perform on time a material breach under the agreement. This sample clause here is unilateral and drafted in favor of Party A. Party B’s obligations under the entire agreement must be performed in a timely manner. The clause includes optional language allowing for termination and other remedies.

Common Contracts with this Clause:

  • Purchase and Sales Agreements (Real Estate)
  • Purchase and Sales Agreement (Goods)
  • Construction Agreements
  • Loan Agreements
  • Services Agreements
 

What you'll see with Lawgood:

Number of Positions Available:

Four (4) Alternative Positions

  • Unilateral (General)
  • Unilateral (Specific)
  • Mutual (Specific)
  • Mutual (General)

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