TOPEKA, Kan. (RFD News) — Timing is a major factor throughout agriculture, where planting windows, markets, and seasonal pressures can all affect business decisions.
That is one reason legal agreements tied to agriculture often include the phrase “time is of the essence,” a clause designed to emphasize the importance of meeting contractual deadlines.
RFD News farm legal expert Roger McEowen with the Washburn School of Law joined us on Wednesday’s Market Day Report to discuss how the clause applies across the agriculture industry.
“Without a ‘time is of the essence’ clause, a lot of courts may permit reasonable delays or substantial compliance if the delay doesn’t materially prejudice the other party.”
He says adding the clause can significantly change how courts view contractual deadlines.
“If you add that clause, that’s going to substantially change the contract dramatically, and so when you’ve got that language in there, what that means is that deadlines now become material and they’re material in terms of they’re an obligation under the contract. Failure to perform on time may constitute a breach of the contract, a material breach.”
In his conversation with RFD News, McEowen explained how timing issues can affect land sale transactions and farm lease agreements, especially in an industry heavily tied to seasonal cycles. He also discussed crop inputs, grain marketing contracts, and the role that timing clauses can play in farm succession planning.
READ MORE: When “Time Is of the Essence” Really Matters in Agricultural Transactions
Thu, 4/4/24 – 10 PM ET | 9 PM CT | 8 PM MT | 7 PM PT
