MHIC NASCLA Contractors Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 400

What obligation do contractors have when entering into a contract with a customer at the time of execution?

Provide a verbal summary of the contract

Provide a copy of the contract

When a contractor enters into a contract with a customer, it is essential to provide a written copy of the contract at the time of execution. This practice serves several purposes. Firstly, it ensures transparency between the contractor and the customer by allowing the customer to reference the terms and conditions of the agreement at any time. This document contains vital details such as project specifications, timelines, payment schedules, and responsibilities, which can help prevent misunderstandings or disputes later on.

Additionally, providing a copy of the contract protects both parties’ interests by establishing a clear and enforceable agreement. In the event of disagreements, having a written contract serves as important evidence in resolving any potential conflicts.

While verbal summaries or phone call confirmations can facilitate communication, they lack the legal standing and clarity that a written contract provides. Likewise, a notice period is not typically a standard obligation tied to the execution of the contract itself. Therefore, ensuring that a copy of the contract is given to the customer at the time of execution is a fundamental obligation that upholds good business practices and legal standards in contracting.

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Provide a phone call confirmation

Provide a 10-day notice

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