Contracts & ExecutionQuestion 782 of 1605
A homeowner pays a $1,000 down payment on a $60,000 remodel, then the contractor demands another $20,000 before ordering any materials. The second demand is:
a.Lawful because the down payment was small
b.Lawful because the owner can afford it
c.Lawful if paid by check
d.Unlawful, because it exceeds the value of work performed and materials delivered
Explanation
B&P §7159 bars collecting payments that exceed the value of work performed and materials delivered. Demanding $20,000 before any materials are ordered violates this rule.
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)