Contracts & ExecutionQuestion 729 of 1605
On a $50,000 whole-house remodel, a contractor wants the largest lawful down payment. Without a joint control, that amount is:
a.$5,000
b.$1,000
c.$2,500
d.$500
Explanation
The cap is $1,000 or 10%, whichever is less. Ten percent of $50,000 is $5,000, but the $1,000 ceiling is lower, so the maximum lawful down payment is $1,000.
Law Reference: B&P §7159(d)Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)