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When is time ordinarily treated as being of the essence in a contract for the sale of immovable property?

Question and options

When is time ordinarily treated as being of the essence in a contract for the sale of immovable property?

  1. When the contract specifies a completion date

  2. When the contract includes a payment schedule

  3. When the parties intended time to be essential

  4. When the parties agree to a new completion date

Answer and explanation

Correct answer: C - When the parties intended time to be essential

Time is ordinarily presumed not to be of the essence in a contract for sale of immovable property. A sufficiently clear intention to make time essential can displace the presumption. In Chand Rani v. Kamal Rani (1993) the Supreme Court held that fixing a date or a schedule of payments does not by itself make time essential; the intention must appear from the express terms, the nature of the property or the surrounding circumstances.

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