Time provisions in contracts are Select one: a. Always interpreted strictly. For

Question

Time provisions in contracts are Select one:

a. Always interpreted strictly. For example, if the contract says, "delivery is to be on June 1" then delivery must be on that day or a breach will occur.

b. Are usually interpreted to mean "on or about" the specified date.

c. Will be interpreted strictly only if the performing party knows of facts that would lead a reasonable person to conclude that late delivery would not be acceptable.

d. Will be interpreted strictly only if the contract states clearly "Time is of the essence of this contract".

e. Will be interpreted strictly only if the contract clearly states that late performance will not be accepted or uses other language to clearly convey a similar idea for the performing party.

Explanation / Answer

Time provisions in contracts relates to the schedule in which the acts are carried out. In the case the time provision institutes the condition within the contract then it is called as “time is of the essence only”. Generally, it is bases on the nature of the conditions or circumstances or intentions while making business transactions. For example, most of the shipping business related contracts may have “ready to load” clauses. Hence, it is enforced when something goes wrong as mentioned in the contract.

Answer: Time provision in contracts will be interpreted strictly only if the contract states clearly "Time is of the essence of this contract".

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