A contract specifies that 'time is of the essence.' That means that:

• A. All contractual duties must be fulfilled on or before the date set forth in the contract.
• B. Only the performance deadlines matter.
• C. The contract is void if deadlines are missed.
• D. The time of day is critical for performance.

Answer: (A)

Time is of the essence makes deadlines material in a contract. It means the dates and times stated are not merely guidance but essential terms, so all obligations must be performed on or before the specified date. If a party misses a deadline, that failure typically constitutes a breach that may allow the other party to terminate or pursue remedies, rather than the contract automatically dissolving or being void.

That’s why the best description is that all contractual duties must be fulfilled on or before the date set forth. The other options aren’t correct because: performance deadlines aren’t the only thing that matters—the entire timetable governs whether obligations are met; missing deadlines doesn’t automatically void the contract (it usually amounts to a breach with available remedies); and the time of day is only critical if the contract explicitly requires it—generally, the focus is on dates rather than the exact time of day.