What is a “Time is of the Essence” Clause

When a “time is of the essence” clause is contained in a real estate contract, the parties are required to perform certain obligations within a specified time. If a party’s obligation is not performed within the essential time, the non-performing party has defaulted. By defaulting, the other party is provided the opportunity to cancel the […]

The Importance of a “Time is of the Essence” Provision

In Inspiration Yacht Charters, Inc. v. Inspiration Yacht Charters II, Inc., 11-14931, 2012 WL 3731704 (11th Cir. 2012), Inspiration Yacht Charters I, Inc. (“seller”) agreed to sell a yacht to KK Aggregates, Inc. for $7,000,000 with a $690,000 security deposit to be held in escrow by KK Aggregates’ broker.  KK Aggregates assigned its interest in […]