View the detailed guide on time is of the essence provisions  - In a Professional Services Agreement (PSA), a "time is of the essence" clause sets clear expectations that deadlines and timelines for the provision of services are not merely target dates, but mandatory deadlines that are critical to the contract. - Failure to meet these deadlines can be considered a "material" breach of the contract, potentially resulting in severe consequences such as the termination of the contract or refund of payments made. - For example, suppose a tech company is hired to configure custom software system for a retailer, with the launch scheduled ahead of the peak holiday shopping season. The PSA might include a "time is of the essence" clause to emphasize that the software must be ready by the agreed-upon date. If the tech company fails to configure the software on time, the retailer could potentially terminate the contract and seek a refund, as the delay could cause significant losses due to missed holiday sales. This clause ensures both parties understand the critical importance of the timelines and sets the stage for potential legal remedies if the deadlines aren't met.