A contractual stipulation indicating that punctual performance is a critical element of the agreement. If performance is not completed within the specified period, the non-breaching party may have grounds to terminate the contract. For instance, a real estate contract might state that closing must occur by a specific date, and if it doesn’t, the seller can withdraw from the deal.
This clause provides certainty and predictability in transactions, allowing parties to plan accordingly and mitigate potential damages resulting from delays. Its inclusion signifies a high level of importance attached to deadlines. Historically, courts did not always enforce strict adherence to deadlines unless explicitly stated. The inclusion of the clause ensures that the parties understand the significance of the agreed-upon schedule, making it more likely that the courts will enforce that schedule.
