Final answer:
Performance on the specified date in a contract is deemed essential in the case of a sale of goods that fluctuate rapidly in value because market volatility can significantly alter their worth, impacting the terms of the originally agreed upon contract.
Step-by-step explanation:
In contract law, performance on the exact date specified in the contract is most likely to be deemed essential in the case of a sale of goods that fluctuate rapidly in value. This type of sale is called "time is of the essence." Because the value of these goods can change significantly from one day to the next, any delay in performance can have serious financial implications for the parties involved.
For example, commodities like gold, oil, or agricultural products can have prices that change rapidly due to market conditions. Therefore, if the contract specifies a certain date for the delivery of such goods, it generally means the timing of the delivery is critical to the agreement and must be adhered to strictly.