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July 20, 2010

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What is a Home Improvement Contract

Subpart 1.6—Career Development, Contracting Authority, and Responsibilities
A home improvement contract is an oral or written agreement BETWEEN a contractor or salesperson AND either a residential owner or a tenant for the performance of a home improvement.

If the total cost of the project exceeds $500, by law the contract MUST be in writing. The total cost includes labor, services, and materials.

A home improvement contract must include elements specified in Business and Professions Code Section 7159 and elsewhere. This document outlines those elements.

Business and Professions Code 7151.2

"Top Ten" Problems with Home Improvement Contracts

In no particular order, here are frequently seen problems with home improvement contracts:

Notice regarding Registrar's address missing
Excessive down payment requested
Equipment to be used or installed not detailed, and materials to be used not described specifically enough
Notice to owner regarding liens not included
Job to be completed is not clearly stated and described
Right to cancel notice missing
Bid not figured out carefully and/or completely
Change orders not included
Old notices used with old addresses and noncompliant language
Start and stop dates not included

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Did You Know?

There Are Three Elements For A Contract To Exist - Offer, Acceptance & Consideration
The first step to creating a contract is an Offer; followed by Acceptance of the offer which must be valid and then its Consideration which is a legal concept meaning something of value that is given in exchange for a performance or a promise to perform.

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	News about contract cases in Hawaii and nationwide: General Information on Contracts By definition, and as contractors already know, contractors contract. It's an essential part of what contractors do. And the essential meaning of c... Read more > More Contract News >

Contract Terms

Today's Terms

Turnkey Contract

Definition:
An agreement under which a contractor agrees to complete a product so that it is ready for use when delivered to the other contracting party.

Unconscionable

Definition:
Unreasonable; outrageous. Courts in many countries may refuse to enforce contracts which they deem to be unconscionable.

Letter of Intent

Definition:
A document that describes the preliminary understanding between parties who intend to make a contract or join together in another action.

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Contract Hot Topics

Topics Related to Contract:

Acceptance
Breach of Contract
Conditions
Liability
Offers
Underwriter
Warranty
Competent Parties
Mutual Assent
Consideration

Hawaii Contract Attorney

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Makakilo City
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Schofield
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Waipahu
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