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A licensed California contractor completes a $14,500 kitchen remodel under a verbal agreement. The homeowner refuses to pay, arguing the contract is unenforceable because it was never put in writing. Under California law, what is the MOST likely outcome regarding the contractor's ability to recover?

Correct Answer

C) The contractor may recover the reasonable value of labor and materials under quantum meruit, because California courts have allowed equitable recovery to prevent unjust enrichment even when §7159's writing requirement is violated

California Business and Professions Code §7159 requires home improvement contracts to be in writing regardless of the dollar amount, and a contractor who violates this requirement cannot enforce the contract on its express terms. However, California courts have consistently permitted contractors to seek recovery in quantum meruit—the reasonable value of services rendered—to prevent the homeowner from being unjustly enriched by completed work. This equitable remedy is distinct from contract enforcement and is the most likely avenue of recovery available to the contractor in this situation.

Answer Options
A
The contractor can enforce the full verbal agreement because complete performance by one party removes the writing requirement under the Statute of Frauds
B
The contractor cannot recover any amount because California Business and Professions Code §7159 requires home improvement contracts to be in writing, and courts strictly deny all recovery for violations
C
The contractor may recover the reasonable value of labor and materials under quantum meruit, because California courts have allowed equitable recovery to prevent unjust enrichment even when §7159's writing requirement is violated
D
The contractor can recover only for materials purchased, not for labor, because verbal agreements for services are unenforceable under the general Statute of Frauds

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Related Topics & Key Terms

Key Terms:

statute_of_fraudshome_improvementBP_Code_7159writing_requirement
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