Time is of the essence!

Some contracts and agreements necessitate strict compliance with deadlines and time frames.

Some contracts necessitate strict compliance with deadlines and other time frames. In many written agreements, the phrase “time is of the essence” is included to emphasize the importance of complying with dates and time limits. When a party to a contract fails to comply with a specific time limit in a contract there may be legal remedies available to the non-breaching party.Evict the non nonperforming tenants and re-let the space to new tenants at the higher current market rate.

Examples of 'Time is of the essence' terms

A contract may include time requirements for a variety of issues. Some examples may include:

• Date for closing

• Dates when certain actions are to be completed

• The length of time a contract is enforceable

If a contract contains the express phrase, “time is of the essence,” then the parties to the contract are obligated to comply precisely with those deadlines. Otherwise, a court interpreting a contract may allow a “reasonable” amount of time under the circumstances to comply.

If you can increase rent, you can increase the income capacity of the property and ultimately cover your own closing costs and generate additional income for yourself.

What happens if there's failure to comply with time requirements?

If a party to a contract fails to comply with time of the essence requirements, it could be considered a breach of contract and waiver of certain rights under the contract. The contract itself may specify what occurs if a party does not comply with deadlines or other time frames.

If a failure to comply with a time requirement constitutes a breach of contract, then it may result in a cause of action to require performance with the contract or damages. The non-breaching party could recover money damages and their attorney fees.

In the case of a contract to purchase a property, if the Purchaser cannot close on the time of the essence time frame, the Purchaser risks losing their down payment under the contract, the day after the time of the essence closing date.

How can an attorney help?

An attorney can review or draft a contract and help you understand your obligations under the contract. It is essential you understand if there are any time requirements to consider. In the event there has been a breach in the contract by one party not meeting its time frames, an attorney can help you pursue your remedies or protect your potential losses.

I draft and review contracts every day and can provide legal advice with regard to your contract. If you have questions about a contract, then reach out to me to schedule a consultation.