Contracts, Liability, and Consumer Protection
Promises, disclosures, and remedies
Know the difference between express warranties (written or stated) and implied warranties (workmanlike performance, habitability). Know that limitation-of-liability clauses cannot override statutory consumer protections in many states. Know the right to cancel rules for home solicitation contracts (often a 3-day cooling-off period) and the required notice of cancellation language.
Know lien law basics: mechanics' liens protect unpaid contractors and suppliers, require preliminary notices in some states, and must be filed within statutory deadlines after completion. Know prompt payment statutes and retainage limits where applicable. Know that change orders must be written and signed to be enforceable.
Traps: assuming a signed waiver releases all claims (it may not); confusing arbitration with litigation; believing a verbal promise is unenforceable (it may be); and forgetting that consumer protection statutes can impose penalties beyond the contract price.
Worked example: a homeowner cancels within the 3-day window under a home solicitation contract. The contractor must refund deposits promptly and cannot enforce the contract - regardless of work already scheduled.
Rule of thumb: put every change, promise, and waiver in writing, and know your state's cancellation and lien deadlines.