Consumer Protection Law
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Although the contractor could not legally perform the work, that does not invalidate the contract if it is otherwise valid. If the salesman held himself as representing the contractor, then that salesman is an agent under the law. An agent under the law has the authority to enter into a contract on behalf of the contractor. Thus, the contract would generally be considered valid. However, the contractor would not generally have a remedy against the other party if there is a breach by the other party because the contractor cannot legally perform the work. The reverse would not be true, the other person would be able to sue the contractor for breach (but of course that person would not really want the contractor to perform any work if the contractor is unlicensed).
The following article does go into some detail on this matter:
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I assume, then, that you're the other party and not the contractor. The contractor cannot enforce the agreement against you so there's no reason you cannot just walk away. You could also make a complaint with the Board.
By arguing it is unenforceable by the contractor.
You could also base a void contract argument on fraud - that they represented they were licensed and they were not.
Okay, that was not clear to me. Do you have a reason to believe some licensing requirement was not met by the salesperson?
Okay, thanks. since he was unlicensed, that still prevents the company from obtaining compensation for any work performed. Plus, you still have the fraud claim to void the contract if the person represented himself as licensed.
And, again, you can file a complaint with the Board (and you probably should that).
It would have weight in court, but something that I have not seen specifically addressed in court opinions is whether the unlicensed salesperson is simply prohibited from obtaining compensation for his services (and the licensed contractor still could) or whether the contract entered into by the unlicensed salesperson also prevents the licensed contractor from obtaining compensation. Either way, as originally noted the contract is not invalid because of the lack of a license -- it simply can act as a shield to the contractor (or salesperson) from obtaining compensation. Thus, to argue the invalidity of the contract, you would need to base it on a fraud argument. Plus, if you have grounds under the terms of the contract for termination, then those would also be important (in the event the fraud argument fails).
Yes, absolutely it is enough (with your other arguments) to hopefully force a negotiation for termination without having to resort to expensive court action. It definitely strengthens your position.
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