Final answer:
The concept in question relates to the enforceability of time-based obligations within a contract, and the potential for a contract to become voidable if such terms are not followed. Contractual clauses related to timing are important and may be limited by applicable state law, which can impact the validity of those clauses.
Step-by-step explanation:
The statement "the time limits set by the contract must be faithfully observed or the contract is voidable" touches on the contractual principle that parties must adhere to the deadlines and time frames stipulated in a contract. Failure to do so may render the contract voidable, which means that one or more parties may have the option to rescind the contract due to the breach of the time-related terms. It is crucial to understand that contracts often contain clauses that dictate the consequences for failing to meet obligations, including those related to timing. Such clauses can be enforceable, depending on the wording and the applicable state law. Some states may limit the ability to totally disclaim warranties or limit liabilities through such clauses, as suggested by the provided reference statement, which discusses disclaimers and limitations set forth within a contract being subject to the law of the state applicable to the agreement. If certain provisions of the agreement run afoul of state law and are deemed invalid, this does not necessarily void the entire contract, unless the voided provisions are so central to the agreement that their absence nullifies the contract's overall intent and purpose.