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Unlicensed Builder Cannot Enter into Valid Construction Contracts
Pd 7/8Megan and Anna
SummaryA court held an unlicensed home builder cannot sue for breach of contract. Since he didn’t have a home builder license it was against the law to try and enter in a construction contract for more than $10,000.The Riedls hired and contracted King Home Services to do work on their house for $14,075. not all work was specified in the contract. The family was not happy with the work done by King Home Services, and sued the company for damaging their home. The business counterclaimed for breach of contract and unjust enrichment. The court dismissed the company’s claims and transfer the Riedls’ claims to small claims court where King Home Services appealed.
Key Words
• Construction - The act or process of constructing. The art, trade, or work of building
• License - a permit from an authority to own or use something, do a particular thing, or carry on a trade
• Breach - an act of breaking or failing to observe a law, agreement, or code of conduct.
Decision
• King Home Service was not a licensed contractor and knowingly took on a job for more than $10,000. therefore he was already in violation of the state law. There was clear intent to enter the contract that was more than $10,000. The company cannot bring a claim for breach of contract since he took on work without a license. The business cannot evade anything because the owner and the company all did this knowingly. We agree with the courts decision.