Time Is of the Essence
Definition - What does Time Is of the Essence mean?
Time is of the essence is a phrase used in contracts to put one party in the contract on notice that it has to fulfill its contractual obligation by a specific time in order to trigger the mandatory fulfillment of the other party's obligations. A time is of the essence clause also makes it more likely that failure to meet the obligation by the time specified is a breach of contract.
Justipedia explains Time Is of the Essence
The modern trend in contract law is to grant contracting parties a general freedom to agree to reasonable terms, whatever those terms may be. As long as both parties in a contract are on relatively equal footing, courts will enforce time is of the essence clauses, and rule that missing a specified deadline amounts to a breach of contract.