Practice Test Geeks(MHIC) Maryland Home Improvement Contractor Practice Test
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Contracts and Estimating Flashcards

6 cards from real MHIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Contracts and Estimating flashcards as text

  1. Under Maryland Home Improvement Law, which of the following MUST be included in every home improvement contract?

    Answer: The contractor's MHIC license number

    Every Maryland home improvement contract must include the contractor's MHIC license number. This is a mandatory disclosure requirement under Maryland law.

  2. A contractor provides a written estimate and the homeowner signs it. Under Maryland law, this signed estimate generally functions as:

    Answer: A binding contract if it contains all required contract elements

    If a signed estimate includes all elements required by Maryland Home Improvement Law (parties, description of work, price, start/completion dates, license number, etc.), it can function as a valid binding contract.

  3. Maryland law requires that a home improvement contract include a notice of the homeowner's right to cancel. When must this notice be provided?

    Answer: At the time of signing, as part of the contract

    Maryland Home Improvement Law requires the right-to-cancel notice to be included in the contract at the time of signing, not after work begins.

  4. A contractor gives an oral estimate of $8,000, then submits a written contract for $9,500. The homeowner signed the written contract. Which amount governs?

    Answer: $9,500 — the signed written contract governs

    Under contract law and Maryland Home Improvement Law, the signed written contract governs over any prior oral discussions. The homeowner agreed to $9,500 by signing the contract.

  5. Under Maryland Home Improvement Law, what is the maximum deposit a contractor can require before beginning work?

    Answer: One-third (1/3) of the contract price

    Maryland Home Improvement Law limits advance deposits to one-third (1/3) of the total contract price before work begins.

  6. Which of the following contract provisions is PROHIBITED under Maryland Home Improvement Law?

    Answer: A waiver of the homeowner's right to cancel

    Maryland Home Improvement Law explicitly prohibits contract clauses that waive the homeowner's right to cancel. Such provisions are void as against public policy.