Question

Millicent and her neighbor, Tommy, agree to swap houses. Because they both hate to move, they also agree to leave all of their furnishings behind, but take their personal belongings. Both parties do exactly what they say, and they don't even have to do a change of address—they simply install a vacuum mail chute between the two houses.

What phrase is often used in contracts to convey the need for the parties to proceed in good faith and not unduly delay the process?
a) Caveat emptor
b) Force majeure
c) Time is of the essence
d) Quantum meruit

Answer 1

The phrase 'Time is of the essence' is used in contracts to stress the importance of adhering to agreed timelines and completing actions in a timely manner. c) Time is of the essence.

Step-by-step explanation:

The phrase often used in contracts to convey the need for the parties to proceed in good faith and not unduly delay the process is c) Time is of the essence.

This term indicates that timely completion and adherence to the timeline are critical to the contract. It means that any delays could be grounds for the non-delinquents party to claim breach of contract. The other options: a) Caveat emptor (let the buyer beware), b) Force majeure (unforeseen circumstances preventing fulfillment of a contract), and d) Quantum meruit (as much as deserved) do not convey this urgency.