A “time is of the essence” clause embodied in a written agreement requires the parties to that agreement to perform their obligations thereunder within a specified or reasonable time; and if a party’s obligation is not performed with said time, said party has defaulted providing the other party the right to cancel the agreement. See, e.g., Sun Bank of Miami v. Lester, 404 So.2d 141 (Fla. 3d DCA 1981) (holding that since the buyer failed to make a deposit within the time specified in the purchase contract, it was lawful for the seller to default the buyer under the contract, and refuse the buyer’s attempt to cure his default).

When a contract contains a “time is of the essence” clause, such clause is enforceable in both law and in equity. Realty Securities Corporation v. Johnson, 111 So. 532, 534 (Fla. 1927); Blausten v. Weiss, 409 So.2d 103, 105 (Fla. 4th DCA 1982).

With respect to a purchase contract for the sale of real property, it has been found that a “time is of the essence” clause is designed to provide sellers an immediate right to terminate the contract if a purchaser is unable to timely demonstrate his or her ability to purchase the real property. See Garcia v. Alfonso, 490 So.2d 130, 131 (Fla. 3d DCA 1986). If a contract does not contain a time is of the essence clause then the time limitations in the contract probably will not be construed literally. This can lead to unnecessary and costly litigation.