Contracts entered into by unlicensed contractors are what?

Contracts entered into by unlicensed contractors are categorized as unenforceable primarily due to regulations that are designed to protect consumers. When a contractor is required to have a license to legally perform work in a certain jurisdiction and does not possess one, the law often considers any contract they enter into as lacking legal validity. This means that if a dispute arises, the unlicensed contractor cannot seek legal recourse to enforce the contract or collect any payment for services rendered, as the foundation of the agreement is considered flawed due to the contractor's lack of licensure.

The intent behind such regulations is to ensure that all parties involved in contracting for services meet specific standards of professionalism and competency. This protects consumers from potential fraud or substandard work that could arise from hiring an unlicensed contractor. Thus, even though the parties may have agreed to terms, the absence of a valid license renders the contract unenforceable in a court of law.