What does the phrase "time is of the essence" in a contract imply?

The phrase "time is of the essence" in a contract signifies that the timelines specified within the agreement are crucial and must be adhered to strictly. This means that any actions required by the contract must take place by the dates outlined, and failure to do so may result in a breach of contract. This principle is especially important in real estate transactions, where closing dates, inspection deadlines, and other milestones are critical to maintaining the agreement's integrity and ensuring that all parties fulfill their obligations promptly. Such urgency emphasizes the importance of adhering to the schedule to avoid legal complications or loss of opportunities.