Contracts, Laws, and Agreements Flashcards
7 cards from real General Contractor License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts, Laws, and Agreements flashcards as text
A general contractor includes an indemnification clause requiring subcontractors to indemnify the GC even for the GC's own negligence. In many states, this type of clause is:
Answer: Void or limited by anti-indemnity statutes
Many states have enacted anti-indemnity statutes that prohibit or limit construction contract clauses requiring one party to indemnify another for their own negligence.
Under the Spearin Doctrine, if an owner provides defective plans and specifications that cause construction problems, who is liable?
Answer: The owner, for impliedly warranting the adequacy of the plans
The Spearin Doctrine holds that when an owner provides plans and specifications, there is an implied warranty that following them will produce the intended result, making the owner liable for defects in those documents.
A contractor who is owed money files a mechanics lien. What is the deadline typically tied to for filing a mechanics lien in most states?
Answer: A fixed period after the last date of furnishing labor or materials
Most state mechanics lien statutes require filing within a specified number of days (commonly 30-90) after the claimant last furnished labor or materials to the project.
What is the purpose of a 'scope of work' provision in a subcontract agreement?
Answer: To precisely define the work the subcontractor is and is not responsible for performing
A scope of work provision clearly delineates the specific tasks, responsibilities, and boundaries of the subcontractor's work to prevent disputes over what was included in the contract price.
Under contract law, what makes a construction contract 'void' rather than merely 'voidable'?
Answer: A void contract lacks an essential element (e.g., illegal purpose) and cannot be enforced by anyone; a voidable contract can be enforced until disaffirmed
A void contract has no legal effect from the outset (e.g., contracting for illegal work), while a voidable contract is valid but may be rescinded by one party due to duress, fraud, or incapacity.
A contractor's license is automatically suspended in most states when which of the following occurs?
Answer: The contractor's required surety bond or insurance lapses
Most state licensing boards automatically suspend a contractor's license when required bonds or insurance lapse, because these protections are conditions of licensure.
What legal concept allows a contractor to recover the reasonable value of work performed when no valid contract exists but the owner has been unjustly enriched?
Answer: Quantum meruit
Quantum meruit (Latin for 'as much as deserved') allows recovery of the reasonable value of services rendered when there is no enforceable contract, to prevent unjust enrichment.