Don’t treat “time of the essence” Provisions as Boilerplate.
/The legal term of art “time is of the essence” is often encountered in commercial contracts, particularly for goods and services. Often it is viewed so much as part of the boilerplate that drafters may not realise the effects this terminology may have. In a recent contract negotiation, one of our lawyers encountered resistance to its removal, even though it was clear that the legal consequences of the wording were not intended by the parties.
In this article we provide a quick refresher on the effect of a “time is of the essence” clause.