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Contracts for Paralegals: Legal Principles and Practical Applications 1st Edition by Linda Spagnola
Edition 1ISBN: 978-0073511764Contracts for Paralegals: Legal Principles and Practical Applications 1st Edition by Linda Spagnola
Edition 1ISBN: 978-0073511764 Exercise 2
Which of the following is a "time of the essence" clause:
A)The closing shall take place on September 30 th at the office of the buyer's attorney.
B)The closing must take place on September 30 th at the office of the buyer's attorney.
C)The closing shall take place on September 30 th at the office of the buyer's attorney.Either party may indicated that time is of the essence and give notice by September 20 th.
A)The closing shall take place on September 30 th at the office of the buyer's attorney.
B)The closing must take place on September 30 th at the office of the buyer's attorney.
C)The closing shall take place on September 30 th at the office of the buyer's attorney.Either party may indicated that time is of the essence and give notice by September 20 th.
Explanation
Verified
Verified
Time of the essence clause in the contract indicates that the dates mentioned in the contract are mandatory for performance to complete on or before that date. Failure to complete it on the specified date will result in breach of contract.
The word "shall" does not impose a legal obligation for the time clause. Therefore, the date mentioned for i.e. 30 th September is not mandate if must condition is not used and it cannot result in breach of contract.
Therefore option
is incorrect
The word "shall" does not impose a legal obligation for the time clause. As it is not a must clause in the contract, any notice sent is only helpful to remind the party about the closing date but it cannot change the "shall" clause to "must" clause in the contract.
Therefore option
is incorrect
The word "must" imposes a legal obligation for the time clause. The must condition represents the time of the essence for contract to be closed on 30 th September. As it is a must clause, it can result in breach of contract if party fails to do it.
Therefore option
is correct
The word "shall" does not impose a legal obligation for the time clause. Therefore, the date mentioned for i.e. 30 th September is not mandate if must condition is not used and it cannot result in breach of contract.
Therefore option
is incorrectThe word "shall" does not impose a legal obligation for the time clause. As it is not a must clause in the contract, any notice sent is only helpful to remind the party about the closing date but it cannot change the "shall" clause to "must" clause in the contract.
Therefore option
is incorrect The word "must" imposes a legal obligation for the time clause. The must condition represents the time of the essence for contract to be closed on 30 th September. As it is a must clause, it can result in breach of contract if party fails to do it.
Therefore option
is correct
Contracts for Paralegals: Legal Principles and Practical Applications 1st Edition by Linda Spagnola
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