Saturday, December 22, 2012

Time is the essance of the Contract

Time is the essance of the Contract
A common feature of construction contracts is a clause stating that "time is of the essence". In some instances the clause will be inserted as boilerplate or from a precedent without discussion, while in other cases one or both of the parties will expressly request the clause be inserted into the contract. Either way, in the majority of cases little thought is given to the clause or it is often inserted without a clear understanding of its meaning and effect. Contract drafters should take care as "time is of the essence" clauses may not operate in the same manner in a construction contract as they do in other situations, potentially leading to unexpected results during the project
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