Time of the essence

Published by a ��˾��ҹ�� Commercial expert

Practice notes

In-house

Time of the essence

Published by a ��˾��ҹ�� Commercial expert

Practice notes

In-house

This Practice Note explains the purpose and significance of time of the essence clauses in commercial contracts. It explains the general rule and exceptions to the rule, and also looks at practical considerations for both the supplier and customer when considering time of the essence clauses in supply of goods or services contracts.

For a Precedent time of the essence clause together with detailed drafting notes, see Precedent: Time of the essence clause. See also: Drafting and negotiating a time of the essence clause—checklist.

For a discussion on time of the essence clauses in the context of:

•
construction contracts, see Practice Note: Time of the essence—construction contracts
•
rent reviews, see Practice Note: A guide to rent review for property lawyers—When is time of the essence?

Consequence of a time of the essence clause

Where a contract provides that ‘time is of the essence’ in respect of the performance of an obligation, there is a contractual requirement for that obligation to be performed within the timescale specified. Generally, a failure to do so will result in a

Jurisdiction(s):

United Kingdom

Key definition:

Time of the essence definition

What does Time of the essence mean?

If time is of the essence for performance of an obligation under the agreement and the party responsible does not perform within that time, the other may terminate the Agreement and claim damages.

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