What happens if I miss a deadline in a contract that says time is of the essence in Ontario?

A "time is of the essence" clause in an Ontario contract means that the stated deadlines are strict conditions of the contract, not merely targets. If a party fails to meet a deadline in a contract where time is of the essence, the other party is entitled to treat that failure as a repudiation and bring the contract to an end — without being required to give extra time.

This is particularly common in real estate transactions. If a closing date is made time of the essence and one party cannot close on that day, the other party can terminate and keep the deposit (in the case of a buyer default) or face a specific performance or damages claim (in the case of seller default).

That said, time can be waived or extended by the conduct or agreement of both parties. If a party with the benefit of the clause grants an extension, accepts late performance, or acts in a way inconsistent with insisting on time, a court may find that time has been waived — but this requires clear evidence.

If you cannot meet a contractual deadline, communicate immediately and try to agree to a written extension. Simply missing the date and hoping the other side lets it go is risky.