CSLB Law & Business ExamContract Requirements and ExecutionMedium
A contractor orally agrees to install new flooring for $2,500 and begins work the next day without a written contract. Has the contractor violated California law?
- ANo, oral contracts are valid for any home improvement project regardless of price
- BYes, home improvement contracts of $500 or more must be in writing before work begins
- CYes, but only because the amount exceeds $5,000
- DNo, because flooring installation is specifically exempt from written contract rules
Show answer & explanationAnswer & explanation
Correct answer: B. Yes, home improvement contracts of $500 or more must be in writing before work begins
California law requires that home improvement contracts of $500 or more be in writing and signed by both parties before work begins; a $2,500 oral flooring contract violates this requirement.
Why the other options are wrong
- A. Oral contracts are not valid once the price meets or exceeds the $500 threshold.
- C. The threshold is $500, not $5,000.
- D. There is no trade-specific exemption for flooring work.
Written Contract Requirement
Home improvement contracts of $500 or more must be reduced to writing and signed before work begins.
- $500 threshold triggers writing requirement
- Applies before any work commences
- Protects homeowners with documented terms
Memory trick: Five hundred or more, put pen to paper before the door.