The reason they're asking about acceptable latency is that unless the contract specifies differently both parties are bound by what the counterparty can reasona

The reason they're asking about acceptable latency is that unless the contract specifies differently both parties are bound by what the counterparty can reasonably expect. Each country has contract law like this, with lots of legal precedents on what can and cannot reasonably be expected in certain situations. Part of the reason there are all these terms and conditions documents that nobody reads is to prevent this ambiguity (to a point). Although legally it's a bit weak because you cannot really expect people to have agreed to all terms (but it does reverse the burden of proof somewhat, so it's still useful).