This Amendment will aid both consumers and contractors by adding clarity to HB 57.

Plain English Breakdown

The candidate explanation includes details that are not supported by the provided official material. The amendment focuses specifically on removing certain clauses from HB 57 and ensuring contracts do not include invalid provisions, rather than making broad changes to all unclear or unfair parts of home improvement contracts.

Amendment to Help Consumers and Contractors Understand Home Improvement Contracts

This amendment clarifies HB 57 by removing unclear or unfair clauses in home improvement contracts, particularly those related to penalty provisions and waivers of rights.

What This Bill Does

• Removes lines from HB 57 that allow certain clauses in home improvement contracts.
• Adds new rules to ensure home improvement contracts do not include penalty provisions for canceling a contract after a set period.
• Ensures that home improvement contracts cannot include clauses waiving the buyer's rights or allowing judgments without going to court.

Who It Names or Affects

• Consumers who sign home improvement contracts
• Contractors who create and use home improvement contracts

Terms To Know

confession of judgment

A clause in a contract that allows one party to declare the other owes money without going to court.

penalty provision

A part of a contract that says someone has to pay extra if they cancel the contract after a certain time.

Limits and Unknowns

• The bill does not specify what happens to existing contracts with these clauses.
• It is unclear how this amendment will be enforced or monitored.

Official Summary Text

This Amendment will aid both consumers and contractors by adding clarity to HB 57. Established Delaware contract law prohibits a penalty provision in a contract. Because consumers are unaware of the invalidity of such a provision, they frequently do not know they may challenge such a provision and are put in a position in which they believe they have no choice but to pay such penalties. This Amendment will inform well-meaning contractors so that they don’t use boilerplate contracts from other states that have such a provision.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

TO

HOUSE BILL NO. 57

AMEND House Bill No. 57 by deleting lines 70 through 71 in their entirety and inserting in lieu thereof the following:

“

(1) Include in a home improvement contract any of the following:

a. Any confession of judgment or any waiver of any of the rights to which the buyer is entitled under this subchapter.

b. Any penalty provision for canceling a contract after the cancelation period.

”.

SYNOPSIS

This Amendment will aid both consumers and contractors by adding clarity to HB 57. Established Delaware contract law prohibits a penalty provision in a contract. Because consumers are unaware of the invalidity of such a provision, they frequently do not know they may challenge such a provision and are put in a position in which they believe they have no choice but to pay such penalties. This Amendment will inform well-meaning contractors so that they don’t use boilerplate contracts from other states that have such a provision.