Time Is Of The Essence Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Time Is Of The Essence, written in plain English, along with examples of how it is used.

What is Time Is Of The Essence?

It is a statement used in contract or agreements and meant to specify that the time and dates mentioned in contract are very important to maintain and should not be ignored by any of the party under any circumstances. The agreement is liable for cancellation if there is a delay of any form.

History and Meaning of Time Is Of The Essence

The term "Time Is Of The Essence" is a legal phrase used regularly in contracts and agreements. It originated in English law to designate that punctual performance of contractual obligations is essential, and any delay in performing those obligations will lead to the contract's breach. In simple terms, it means that time is a critical element of the agreement or contract, and performance must be made on time. Contracts can have deadlines for either party to keep, and this clause is used to emphasize the importance of meeting such deadlines for smooth implementation of a project.

Examples of Time Is Of The Essence

  1. In a construction contract, if the contract specifies that a particular structure needs to be completed by December 15, the contractor is obliged to complete the structure by that date. If the contractor fails to do that, the client reserves the right to cancel the project.

  2. In a company's employment contracts, a clause mentioning 'Time is of the essence' implying that early attendance is very significant and any delay from the employee can breach the company's policy.

  3. A fashion brand has e-commerce on its website and has a flash sale of a product available just for an hour mentioning "time is of the essence" to create urgency and encourage customers to buy the product right away.

Legal Terms Similar to Time Is Of The Essence

  1. Breach of contract - A legal cause of action in which a binding agreement is not honored by one or more parties involved in the contract.
  2. Expiration date - Predetermined date at which a contract or agreement ends.
  3. Deadline - A date or time by which something must be completed or submitted.