Contracts & ExecutionQuestion 181 of 1605
A home improvement contract states the contract price as "to be determined" with no total dollar amount. This contract is:
a.Fully valid as long as the homeowner signs it
b.Valid only for emergency repairs
c.Valid if the contractor is bonded
d.Improper, because the contract must state the total contract price on its face
Explanation
A home improvement contract must clearly state the total contract price in dollars. An open-ended or undetermined price deprives the consumer of a key disclosure and violates the contract requirements.
Law Reference: Bus. & Prof. Code §7159.5Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)