Arya Group, Inc. v. Cher

In Arya Group, Inc. v. Cher (2000) 77 Cal.App.4th 610, the court considered the question whether section 7164 precluded a breach of contract claim where the contractor failed to secure a signed written construction contract. ( Id. at p. 613.) The court noted that while generally "'a contract made in violation of a regulatory statute is void', . . . '"the rule is not an inflexible one to be applied in its fullest rigor under any and all circumstances"' and '"a wide range of exceptions has been recognized."'" ( Id. at p. 615) One of the exceptions is where non enforcement would unjustly enrich the owner and exact a disproportionately harsh penalty upon the contractor. (Ibid.)