contract-law
Why is &quot;time is of the essence&quot; needed?
<p>I do not understand why the clause "time is of the essence" would be necessary? If a contract states that something needs to be done on a certain date, isn't it clearly a violation if that is not done? For example "the repair man will fix the alarm system by February 1st." and he hasn't, why wouldn't this be a violation of the contract?</p>

<p>Is it that "time is of the essence" means it's a material violation, and not a non-material violation? </p>

<p>It would be a violation of the contract and you could sue for damages; but you would not be entitled to terminate the contract unless the guy was <em>unreasonably</em> late. If he does it on February 2 your damages would be ... $1.99? Maybe?</p>

<p>However, "time is of the essence" makes time a <em>term</em> of the contract, rather than a warranty. If he doesn't do it by Friday you can <em>terminate</em> the contract. Oh, and sue for damages which could include the difference in price charged by the next repair man.</p>
