What phrase indicates that a breach of contract is taken seriously regarding performance deadlines?

The phrase "time is of the essence" is a legal term that indicates deadlines in a contract must be strictly adhered to. When this phrase is included in a contract, it emphasizes that timely performance is a critical element of the agreement, and any delay could constitute a breach of contract. This means that if one party fails to complete their obligations within the specified timeframe, the other party may have the right to seek remedies, which could include termination of the contract or damages for any losses incurred due to the delay.

This concept is vital in real estate transactions, where timing can significantly affect the deal's success, such as when closing dates and contingencies are involved. Contracts that lack this language may allow for more leeway with deadlines, but including "time is of the essence" underscores the importance of adhering to agreed schedules without delay.