This article is the second part of a two-part series where our attorneys discuss the importance of a Time is of the Essence provision. If your contract contains this provision, it must be strictly adhered to. Failing to adhere could subject you to legal consequences you do not want to deal with. These consequences may include liability for losses caused by the delay, a court injunction, or punitive damages. If you are facing a dispute regarding a delay, do not hesitate to contact one of our Birmingham contractor attorneys. Read part one for the beginning of the article.
What to Consider
As with any contract, how you draft the contract is critical. The Time is of the Essence provision should use se specific language so that it is clear and unambiguous. It should address consequences from failure to comply with the timelines set in the agreement. It should also describe the behavior that will warrant a waiver of the provision. Additionally, make it clear that time is still of the essence when giving time extensions if you do not want to waive the provision. If you are considering a Time is of the Essence provision, you should contact a Birmingham contractor attorney. for drafting services.
Waiving the Provision
If both parties desire to continue working on the project instead of terminating the contract, the provision can be waived. To preserve the provision, a time extension needs to be approved and in writing noting that the breaching party is still in breach of the contract. This way, if delays still occur, you still have the option of terminating the contract.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.