04 Oct What does Time of the Essence mean?
Q.What does a contract mean when it states “Time to remain of the essence” in Queensland contracts?
A. “Time of the essence” means that a party to a contract must perform its contractual obligations under the Contract by a specific date and time. Failure to act within the time required constitutes a breach of contract and may entitle the party not in breach to terminate the contract.
If, for example, a purchaser does not comply with a condition in the contract by the due date, then they may request an extension of time to allow them to comply with the condition. We recommend that any extension of time requests be sought in writing from the Sellers Solicitor before the expiration of the due date. Confirmation must be received from the Seller’s Solicitor that they are agreeable to the extension before the time provided for in the Contract expires in order for the buyer to avoid being in breach of Contract.