Contracts & ExecutionQuestion 183 of 690
A contractor signs a $700 repair contract with a homeowner. Which statement is correct?
a.No written contract is needed because it is under $1,000
b.The contract may be entirely verbal if both parties agree
c.A written contract is required only if the homeowner is a senior citizen
d.A written home improvement contract is required because the price is $500 or more
Explanation
California requires a written home improvement contract whenever the combined labor and material price is $500 or more. A $700 repair clearly exceeds the threshold and must be in writing.
Law Reference: Bus. & Prof. Code §7159Practice all 690 questions free — no signup required.
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