Contracts & ExecutionQuestion 62 of 1605

A contractor abandons a job without justification after receiving a substantial deposit. The contractor may face:

a.A civil fine only
b.Only a requirement to refund the deposit
c.License suspension or revocation and criminal charges
d.A warning letter from CSLB

Explanation

Abandonment without legal excuse exposes a contractor to license discipline (suspension/revocation), civil liability for breach of contract, and potentially criminal charges for misappropriation of funds.

Law Reference: Bus. & Prof. Code §7107

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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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