California Contractors License Law Practice Exam

Can an unlicensed individual engage in the business of contracting and sue for work done?

1. Yes

2. No

3. Only in small claims court

4. Yes, but only with a written contract

The correct answer is: No

An unlicensed individual cannot engage in the business of contracting and sue for work done in California. The law requires individuals and businesses that perform contracting work to hold a valid contractor's license issued by the Contractors State License Board (CSLB). Engaging in contracting activities without a license is considered unlawful, and as a consequence, such individuals may not seek legal recourse to collect payment for their services. The rationale behind this law is to ensure that only qualified individuals who meet specific standards and regulations can perform contracting work, thereby protecting consumers and maintaining industry integrity. By not allowing unlicensed contractors to sue for their work, the law aims to discourage unregulated activity and uphold the requirement for proper licensing, which includes demonstrating competency and financial responsibility. Consequently, this rule aligns with California's effort to regulate the construction industry, ensuring that those who undertake such projects are appropriately vetted and licensed. While there are some exceptions where unlicensed individuals can seek certain remedies, such cases are typically limited and do not pertain to general contracting work.