What happens to contracts entered into by unlicensed individuals after one year of regulatory enforcement?

Contracts entered into by unlicensed individuals typically become unenforceable and voidable after one year of regulatory enforcement. This means that the law does not recognize such contracts as valid, and either party can choose to void the agreement. This principle exists to protect the public from unlicensed individuals, ensuring that only those who are properly licensed and meet necessary qualifications are able to engage in regulated activities, particularly in home improvement and construction.

The enforceability issues relate to the need for accountability and regulation in the industry. By making these contracts void after a specific time, the law encourages compliance with licensing requirements, thus promoting responsible practice standards. As a result, individuals and businesses need to ensure that they operate within the regulatory framework to avoid potential legal consequences.

The other options do not align with the guidelines regarding unlicensed contracts. For instance, some choices suggest revising contracts or extending grace periods, which are not typically permitted for unlicensed work in this context. The focus is on upholding the integrity of professional licensure, making option B the appropriate response.