An agreement of purchase and sale includes a 'time is of the essence' clause. The buyer fails to waive a condition or provide notice of non-fulfillment by the stipulated deadline. What is the likely legal outcome?

Question: An agreement of purchase and sale includes a 'time is of the essence' clause. The buyer fails to waive a condition or provide notice of non-fulfillment by the stipulated deadline. What is the likely legal outcome?

Answer options: ✅ The agreement automatically becomes null and void.

• The seller can unilaterally extend the condition fulfillment date.
• The buyer retains the right to waive the condition at a later date.
• The parties must renegotiate the terms of the condition.

Correct answer: The agreement automatically becomes null and void.

Explanation: When 'time is of the essence' is included in a contract, strict adherence to deadlines is critical. Failure to meet a condition by the specified time, without waiver or extension, typically results in the automatic termination of the agreement.