A general contractor receives payment from the owner but fails to pay a subcontractor within 10 days. What penalty interest rate applies under California prompt payment law?
Correct Answer
C) 2% per month
California prompt payment law typically requires 2% per month penalty interest when payments are not made timely after receipt of funds.
Why This Is the Correct Answer
California prompt payment law typically requires 2% per month penalty interest when payments are not made timely after receipt of funds.
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A homeowner signs a $12,000 roofing contract at their residence on Friday at 3:00 PM. They decide to cancel on the following Monday at 10:00 AM. Is this cancellation valid?