Final answer:
In a sales contract, the phrase 'time is of the essence' means that it is essential for both parties to meet the specified deadlines and complete the required actions within the agreed timeframe.
Step-by-step explanation:
When the phrase 'time is of the essence' is used in a sales contract, it means that time is an important factor and it is crucial for both parties to meet the specified deadlines and complete the required actions within the timeframe stated in the contract. This phrase emphasizes the importance of punctuality and promptness in fulfilling contractual obligations.