xr Trans-Lex.org Law Research Trans-Lex.org Law Research - Docid: 933000 -
Principle

No. IV.6.6 - Time is of the essence

Unless otherwise agreed by the parties or contrary to the intrinsic nature of the contract, time limits and other contractual stipulations as to the timely performance of the parties' obligations have to be strictly complied with ("time is of the essence").

Commentary
The Principle takes account of the fact that time and costs are essential elements in the dealings of international businessmen. The time factor dominates contractual performances by international traders. For that reason, stipulations as to the timely performance of the parties' contractual obligations must be strictly complied with. Thus, a provision that stipulates that performance must be rendered "on" May 2 does not mean that performance may be rendered "around" May 2. Also, businessmen acting on a global scale must take the effect of the different time zones on the timely performance of their contractual obligations into account.


Please cite as: "Commentary to Trans-Lex Principle , http://www.trans-lex.org/933000"
References
Court Decisions
OLG Stuttgart, WM 1979, at 733 et seq.
Doctrine
Berger, Klaus Peter, Internationale Bankgarantien, 3 DZWir 1993, at 1 et seq.
Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006
Horn, Norbert, Bürgschaften und Garantien, 6th ed., Cologne 1995
Horn, Norbert, Das Recht der internationalen Anleihen, Frankfurt a.M. 1972
Jenks, Edward et al., A Digest of English Civil Law, London, Sydney, Calcutta, Winnipeg, Wellington 1921.
Model Terms
ICC Uniform Rules for Demand Guarantees
ICC Uniform Customs and Practice for Documentary Credits
Contract Clauses
1. Contractual Clause Relating to Timely Performance
Sales & Purchase Contract
Timely Performance
Seller's timely performance is a critical element of this Contract (...)
Other Provisions
(...) Time is of the essence in the performance of the New Agreement (...)
2003
Time
Time is of the essence of every provision herein contained. When the last day for the performance of any act permitted or required hereunder falls on any day which is not a business day in the City of Raleigh, North Carolina, such act may be performed on the next business day in said city. When an act must be performed or a notice given by the end of a specified day, such act must be performed or such notice given by 5:00 p.m. in the City of Raleigh, North Carolina.
2004
Time of Essence
Time is of the essence for each and every provision of this Agreement.
2010
Accounts Receivable Agreement
Time of Essence
Time is of the essence for performance of all obligations in this Agreement.
Loan Contract
Time of Essence
Time is of the essence for the performance of all Obligations in this Agreement.
2011
Time is of the Essence
Time is of the essence in the performance of this Agreement.
2012
Bankruptcy Agreement
Time of the Essence

Time shall be of the essence relative to any and all dates contained in this Plan of Reorganization on the Confirmation Date.


1998
Joint Venture
Effectiveness of the Amended and Restated Agreement and Miscellaneous
Time and each of the terms and conditions of this Amended and Restated Agreement shall be of the essence of this Amended and Restated Agreement and no waiver by any Party or any default by the Party of any provision herein shall be deemed to be a waiver of any other provision herein nor to release such other Party from any such provision.
2005
Effectiveness of this Contract and Miscellaneous
Time limit and each of the terms and conditions of this Contract shall be of the essence of this Contract. If any Party gives up or fails to implement any clause herein, for the Parties, the effectiveness of enforcement and restriction of other clauses herein shall not be reduced.
2006
Time
Time is of the essence with respect to this Agreement and each and every provision hereof.
2007
Lease Contract
Rent Review
Time shall not be of the essence for any period of time referred in this Schedule X.
2009
RENT REVIEW
Where Market Rent is increased with effect from a Review Date the Landlord and Tenant shall (at their own cost) sign memoranda of the Rent (if applicable) in such form as the Landlord may reasonably require for annexation to both the original and counterpart of the Lease.
2010
A project of CENTRAL, University of Cologne.