Contracts & ExecutionQuestion 181 of 1632

A home improvement contract states the contract price as "to be determined" with no total dollar amount. This contract is:

a.Valid, since the homeowner signed it knowing the price was open
b.Valid only for emergency repairs after a declared disaster
c.Valid if the contractor's bond covers the eventual price
d.Improper: the contract must state the total price in dollars

Explanation

B&P §7159(d)(5) requires the home improvement contract to carry the heading 'Contract Price' followed by the amount of the contract in dollars and cents, so a price left 'to be determined' fails a required term on the face of the contract. A homeowner's signature cannot supply a disclosure the statute requires. There is no emergency-repair exception to the price term. And the licence bond answers for damages; it does not fill in a missing contract price.

Law Reference: B&P Code §7159(d)(5)

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