Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 11

In February, Brady contracted to construct a house for Fulghum for $206,850. Brady began construction on March 13. Neither during the negotiation of this contract nor when he began performance was Brady licensed as a general contractor as required by North Carolina law. Brady was awarded his builder's license on October 22, having passed the examination on his second attempt. At that time, he had completed two-thirds of the work on Fulghum's house. Fulghum paid Brady $204,000. Brady brought suit, seeking an additional $2,850 on the original contract and $29,000 for "additions and changes" Fulghum requested during construction. Is Fulghum liable to Brady? Explain.