A homeowner hired an unlicensed contractor for a $45,000 kitchen renovation. Under Virginia law, what remedy is available to the homeowner?
Correct Answer
C) Void the contract and recover all payments made
Virginia law allows homeowners to void contracts with unlicensed contractors and recover all payments made, as such contracts are considered void ab initio.
Why This Is the Correct Answer
Under Virginia law, contracts with unlicensed contractors are void ab initio (from the beginning) when a license is required. This means the contract never legally existed, allowing homeowners to void the entire agreement and recover all payments made. Virginia's strong consumer protection statute recognizes that unlicensed contractors cannot legally perform work requiring licensure, making any such contract unenforceable and giving homeowners the right to full restitution.
Why the Other Options Are Wrong
Option A: Reduce payment by 10% penalty
Virginia law does not provide for a simple 10% penalty reduction. The remedy is much more comprehensive - complete contract voidance and full payment recovery. A mere percentage reduction would be inadequate protection given that the contractor was operating illegally without proper licensing.
Option B: File complaint with Better Business Bureau
Filing with the Better Business Bureau is not a legal remedy under Virginia law. The BBB is a private organization that mediates disputes but has no legal authority. Virginia statute provides specific legal remedies that are far more powerful than BBB complaint procedures.
Option D: Sue for breach of contract only
Since the contract is void ab initio due to the contractor's unlicensed status, there is no valid contract to breach. Traditional breach of contract remedies don't apply when the contract itself is legally void. The homeowner's remedy is contract voidance and restitution, not breach damages.
Memory Technique
Remember 'VOID = Virginia Offers Immediate Dissolution' - when contractors lack required licenses, Virginia law makes contracts completely void, allowing full payment recovery.
More va-supplement Questions
Under Virginia law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
A Virginia contractor fails to pay a subcontractor $18,500 for completed work. Under Virginia mechanics lien law, within how many days must the subcontractor file a memorandum of lien to preserve their lien rights?
A Virginia contractor employs 8 workers with a total annual payroll of $420,000. Using the standard construction rate of $8.50 per $100 of payroll, what is the annual workers' compensation premium?
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Under Virginia contractor law, what happens to a contractor's license if they fail to maintain required insurance coverage?
A contractor fails to pay a subcontractor and the subcontractor files a mechanics lien. Under Virginia law, within how many days must the general contractor post a bond to release the lien from the property?
A Class B contractor in Virginia completed $850,000 worth of work in the current license period and has contracts totaling $1,200,000 for the next period. What action must the contractor take?
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