Time is of the essence: If the buyer fails to comply with the notice, what can the seller do?

• A. Rescind, forfeit deposit, accrued interest, resell and claim damages
• B. Rescind only
• C. Forfeit deposit only
• D. Resell only

Answer: (A)

Time is of the essence means the completion date is a material term and a breach at that date gives the seller a wide range of remedies. If the buyer fails to comply with the notice to complete, the seller may treat the contract as repudiated and terminate it. With that termination, the seller can pursue multiple remedies: rescind the contract, retain the deposit (forfeiture) and any accrued interest if the contract allows it, resell the property to mitigate losses, and claim damages for the shortfall in price plus costs incurred. The deposit acts as security for performance, so forfeiture is a common remedy on breach, while reselling covers the recovery of any loss from not completing as agreed. Interest may also be recovered as part of damages where provided for in the contract or by applicable law. In short, when time is of the essence and the buyer breaches, all of these options can be exercised together, making the full answer the best choice.