Ace the Hawaii Pre-Licensing Exam 2025 – Surf Your Way to Real Estate Success!

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What does the "time is of the essence" clause signify in a contract?

Deadlines outlined in the contract must be adhered to

The "time is of the essence" clause in a contract signifies that the deadlines outlined in the contract must be adhered to strictly. This clause creates an obligation for the parties involved to perform all actions and fulfill their contractual duties within the specified time frames. If one party fails to meet the deadlines, it can be considered a breach of contract, giving the other party the right to seek remedies, which may include termination of the contract or damages.

This clause is particularly important in contracts where timing is critical, such as real estate transactions, construction contracts, and any agreements where delays could lead to significant financial or operational harm. By including this clause, the parties acknowledge that timely performance is a fundamental aspect of their agreement, and both are held accountable to maintain the agreed-upon schedule.

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The contract can be renegotiated at any time

Deliveries can be made at convenience

Government approval is needed before finalizing

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