Legal Memorandum: Waiver of Time is of the Essence Provision

Issue: Under Colorado law, may a ‘time is of the essence’ provision be waived by conduct?

A time of the essence clause can be waived by conduct; and if the clause is waived, performance is due in a “reasonable time.”  See Wooldridge v. Aspen Law Ctr., Inc., 536 P.2d 322, 324 (Colo. Ct. App. 1975) (both parties were technically in default on contract for sale of condominium, and both parties waived the other party’s default, and “by reason of the waiver of the time of the essence provision . . ., a reasonable time for performance by defendant was implied from the performance by the plaintiffs”). 

[…]