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Penalties for using an illegal construction contract in Oklahoma:
- Any attempt to limit the time allowed to enforce legal rights is void under Oklahoma Statutes Title 15 § 216.
- Omission of the notice in Oklahoma Statutes Title 15 § 765.6 gives an owner the right to file suit over a claimed construction defect without giving the contractor (1) written notice of the defect, (2) an opportunity to inspect the defect and (3) a chance to either make repairs or offer compensation for a defect.
- Oklahoma Statutes Title 61 § 227 voids any attempt to apply the law of another state to Oklahoma construction contracts.
- Under Oklahoma Statutes Title 61 § 221 to § 227, the Fair Play for Construction Act, interest accrues at 1-1/2% per month on delinquent payments to subcontractors.
- Oklahoma's Home Repair Fraud Act, (Oklahoma Statutes Title 15, § 765.1, § 765.2 and § 765.3) makes it an unlawful business practice to over-charge for home repair services or materials. A violation of the Act is also a violation of Oklahoma's Consumer Protection Act. On jobs over $500 or repeat offenses, punishment can be a fine up to $10,000 and up to ten years in jail. Oklahoma Statutes Title 15, § 761.1.
- An owner has the right to cancel the contract until three days after a contractor delivers the notice required by Oklahoma Statutes Title 14A § 2-503 (Home Solicitation Sale Act).
- Failure to make federal truth in lending disclosures requires restitution of the overcharge and makes the creditor liable for the debtor's attorney fees.
- Failure to include the disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
- Omitting insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Oklahoma contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Oklahoma and federal court decisions.
The contracts linked below comply with the following Oklahoma and federal laws:
- Attorney fees -- Oklahoma Statutes Title 12 § 936
- Choice of law -- Oklahoma Statutes Title 61 § 227 and Oklahoma Statutes Title 15 § 162
- Consequential damages -- Oklahoma Statutes Title 23 § 21
- Home Repair Fraud Act -- Oklahoma Statutes Title 15 § 765.1, § 765.2 and § 765.3
- Indemnity -- Oklahoma Statutes Title 15 § 422
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest on unpaid balances -- Oklahoma Statutes Title 15 § 266
- Notice of right to repair -- Oklahoma Statutes Title 15 § 765.6
- Payment of subcontractors -- Oklahoma Statutes Title 61 § 224
- Payment of trust funds -- Oklahoma Statutes Title 42 § 152 and § 153
- Payment, Fair Play for Construction Act -- Oklahoma Statutes Title 61 § 221 to § 227
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of limitations -- Oklahoma Statutes Title 12 § 95 and § 109
- Time for filing claims -- Oklahoma Statutes Title 15 § 216
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in Oklahoma.
The contracts linked below conform with current Oklahoma and federal court decisions.
The contracts linked below comply with the following Oklahoma and federal court decisions:
- Ambiguity in the plans -- Cox v. Curnutt, 1954 OK 150, 1954
- Breach of contract -- Henson Construction Co. v. Davis, 2002 OK CIV APP 18, 2002
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Cost of delay -- United States ex rel. Steel-Fab, Inc. v. Wynn Construction, 2006 U.S. Dist. LEXIS 27034, 2006
- Defect in the plans -- Maney v. Oklahoma City, 150 Okla. 77, 1931
- Differing site conditions -- M. J. Lee Construction Co. v. Oklahoma Transportation Authority, 2005 OK 87, 2005
- Implied warranty -- Keel v. Titan Construction Corp., 1981 OK 148, 1981
- Indemnity -- Otis Elevator Co. v. Midland Red Oak Realty, Inc., 483 F.3d 1095, 2007
- Liquidated damages -- LaSalle Bank National Association v. Shepherd Mall Partners, 2006 OK Civ App 91, 2006
- New home warranty -- Bridges v. Ferrell, 1984 OK Civ. App. 19, 1984
- Prompt notice of claim -- M. J. Lee Construction Co. v. Oklahoma Transportation Authority, 2005 OK 87, 2005
- Responsibility for safety -- Waggoner v. W & W Steel Co., 1982 OK 141, 1982
- Rights of third parties -- Keel v. Titan Construction, 1981 OK 148, 1981
- Site inspection clause -- Cook v. Oklahoma Board of Public Affairs, 1987 OK 22, 1987
- Statute of limitations, contracts -- Jaworsky v. Frolich, 1992 OK 157, 1992
- Statute of limitations, negligence -- McVay v. Rollings Construction, Inc. 1991 OK 102, 1991
Return to Penalties for Illegal Contracts in Oklahoma.
Return to construction contract laws in Oklahoma.
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