http://www.adamsdrafting.com/2009/03/09/more-on-time-is-of-the-essence/ Tue, 31 Jan 2012 01:23:03 +0000 hourly 1 http://wordpress.org/?v=abc http://www.adamsdrafting.com/2009/03/09/more-on-time-is-of-the-essence/comment-page-1/#comment-83741 Ken Adams Tue, 10 Mar 2009 14:52:00 +0000 http://www.adamsdrafting.com/2009/03/09/more-on-time-is-of-the-essence/#comment-83741 Scott: The concept of <em>time is of the essence</em> is useful, but let's state the concept in standard English. Ken Scott: The concept of time is of the essence is useful, but let’s state the concept in standard English. Ken

]]> http://www.adamsdrafting.com/2009/03/09/more-on-time-is-of-the-essence/comment-page-1/#comment-83740 Scott Tue, 10 Mar 2009 14:48:13 +0000 http://www.adamsdrafting.com/2009/03/09/more-on-time-is-of-the-essence/#comment-83740 I think the point is that "time is of the essence" clauses have become boilerplate; lawyers seem to throw it in every contract. Perhaps it should be reserved for those cases where time really IS of the essence. When we bought our house several years ago, the contract had a closing date in it. We planned many things around that date, including the arrival of furniture from storage and starting the kids in their new school. About three days before closing we were told that the sellers weren't going to close until five days after the specified date - they had unilaterally decided to extend! "Wait!" we said, "Our contract has a specific closing date indentified. How can they do that?" "Well," our lawyer said, "we did not stipulate in the contract that 'time is of the essence,' so under Connecticut law they can postpone the closing a few days and still be in substantial compliance." After that, I've been both sensitive tot and judicious about the use of the clause; I always try to make sure it is understood WHY time is of the essence. In used aircraft purchase deals, for instance, where we strive hard to ensure fixed dates so as to coordinate the many post-closing activities (e.g., it's expensive to reserve a parking place for an airplane), we use the clause to make sure sellers appreciate how important it is to meet specific date commitments. I think the point is that “time is of the essence” clauses have become boilerplate; lawyers seem to throw it in every contract. Perhaps it should be reserved for those cases where time really IS of the essence. When we bought our house several years ago, the contract had a closing date in it. We planned many things around that date, including the arrival of furniture from storage and starting the kids in their new school. About three days before closing we were told that the sellers weren’t going to close until five days after the specified date – they had unilaterally decided to extend! “Wait!” we said, “Our contract has a specific closing date indentified. How can they do that?” “Well,” our lawyer said, “we did not stipulate in the contract that ‘time is of the essence,’ so under Connecticut law they can postpone the closing a few days and still be in substantial compliance.” After that, I’ve been both sensitive tot and judicious about the use of the clause; I always try to make sure it is understood WHY time is of the essence. In used aircraft purchase deals, for instance, where we strive hard to ensure fixed dates so as to coordinate the many post-closing activities (e.g., it’s expensive to reserve a parking place for an airplane), we use the clause to make sure sellers appreciate how important it is to meet specific date commitments.

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