Describe the concept of "time is of the essence" in contract law.

The concept of "time is of the essence" in contract law emphasizes that deadlines outlined in the contract must be strictly adhered to. When a contract includes this phrase, it signals that timely performance is crucial to the agreement and that failure to meet these deadlines can result in breaches of contract.

In contexts such as real estate transactions, this means that certain steps—like closing dates or handing over funds—are critical and cannot be postponed without potentially serious consequences. This principle ensures that parties can rely on timelines for performance and helps maintain order and predictability in contractual relationships.