A buyer and a seller enter into a purchase and sale agreement. The agreement provides that closing must take place by September 30. A clause states that a party's failure to be ready by a date specified in the contract will constitute a breach of the contract. What is the name of this clause?

A. A habendum clause
B. A contingency clause
C. A time of the essence clause
D. A closing clause

Answer: C. A time is of the essence clause
A contract clause that makes failure to meet a stated deadline a material breach of the contract is called a "time is of the essence" clause. A time is of the essence clause does not have to be a stand-alone provision; it may be part of another provision.