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Penalties for using an illegal construction contract in Mississippi:
- Omission of the Buyer's Right to Cancel notice in a home solicitation sale contract gives an owner the right to cancel the contract even years after completion. Mississippi Code Annotated § 75-66-5(2).
- Contracting for work outside the limits of a Certificate of Responsibility requires an appearance before the State Board of Contractors and can result in suspension. Code of Mississippi Rules, 50-023-001(5)
- A contract for commercial construction is void under Mississippi Code Annotated § 31-3-15 if the contractor does not have the required Certificate of Responsibility.
- Making a false representation in a contract for residential repair or home improvement is punishable by a fine of up to $1,000 and six months in prison under Mississippi Code Annotated § 97-23-103.
- Mississippi Code Annotated § 31-5-41 voids any clause in a construction contract which would require indemnification of someone for their own negligence.
- Omission of federal truth in lending disclosures required by 15 United States Code § 1638 makes the creditor liable for both the overcharge and the debtor's attorney fees.
- Omission of disclosures required by 12 Code of Federal Regulations § 226.15 extends the 3-day right of rescission to three years under 12 Code of Federal Regulations § 226.23(a)(3) and 15 U.S. Code § 1635(f).
- Omission of insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Mississippi contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Mississippi and federal court decisions.
The contracts linked below comply with the following Mississippi and federal laws:
- Alternates to retainage -- Mississippi Code Annotated § 31-5-15
- Arbitration -- Mississippi Code Annotated § 11-15-101 and § 11-15-103
- Certificate of responsibility -- Code of Mississippi Rules § 50-023-001 and § 50-023-002
- Concealment of defect -- Mississippi Code Annotated § 15-1-67
- Contract definition -- Mississippi Code Annotated § 31-3-1
- Contractor licensing -- Mississippi Code Annotated § 73-59-17
- Home repair fraud -- Mississippi Code Annotated § 97-23-103
- Home solicitation sale -- Mississippi Code Annotated § 75-66-1 to § 75-66-9
- Indemnity -- Mississippi Code Annotated § 31-5-41
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest on unpaid balances -- Mississippi Code Annotated § 75-17-1
- Job site sign -- Mississippi Code Annotated § 31-3-15
- Payment of contractors -- Mississippi Code Annotated § 87-7-3
- Payment of subcontractors -- Mississippi Code Annotated § 87-7-5
- Payment of subcontractors (public works) -- Mississippi Code Annotated § 31-5-27 and § 31-5-29
- Retainage -- Mississippi Code Annotated § 31-5-33
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of limitations -- Mississippi Code Annotated § 15-1-49
- Statute of repose -- Mississippi Code Annotated § 15-1-41
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in Mississippi.
The contracts linked below conform with current Mississippi and federal court decisions.
The contracts linked below comply with the following Mississippi and federal court decisions:
- Attorney fees -- A & F Properties, LLC v. Lake Caroline, Inc., 2000 Miss. App. LEXIS 473, 2000
- Changes in the work -- Litton Systems, Inc. v. Frigitemp Corp., 613 F. Supp. 1377, 1985
- Concealment of defect -- Windham v. Latco of Mississippi, Inc., 2008 Miss. LEXIS 44
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Contractor obligations -- Trustees of First Baptist Church v. McElroy, 78 So. 2d 138, 1955
- Covering defects -- Reich v. Jesco, Inc., 1988 Miss. LEXIS 307, 1988
- Disclaimer of warranty -- Stonecipher v. Kornhaus, 1993 Miss. LEXIS 252, 1993
- Extra work -- Sentinel Industries Contracting v. Kimmins Industries Service Corp., 1999 Miss. LEXIS 235, 1999
- Home solicitation sale -- Cole v. Lovett, 672 F. Supp. 947 (S.D. Miss), 1987
- Implied warranty -- George B. Gilmore Co. v. Garrett, 1991 Miss. LEXIS 254, 1991
- Liquidated damages -- Board of Trustees v. Johnson, 1987 Miss. LEXIS 2524, 1987
- No damages for delay -- Tupelo Redevelopment Agency v. Gray Corp., 2007 Miss. LEXIS 577, 2007
- Payment of subcontractors -- Lafayette Steel Erectors, Inc. v. Roy Anderson Corp., 71 F. Supp. 2d 582, 1997
- Plan defects -- Trustees of First Baptist Church v. McElroy, 78 So. 2d 138, 1955
- Statute of limitations -- Baldwin v. Holliman, 2005 Miss. App. LEXIS 297, 2005
- Tolling of the statute of limitations -- Ross v. Citifinancial, Inc., 2003 U.S. App. LEXIS 18068, 2003
Return to Penalties for Illegal Contracts in Mississippi.
Return to construction contract laws in Mississippi.
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