On September 23, 2010, the Illinois Supreme Court held that, pursuant to Illinois' Home Repair and Remodeling Act ("Act"), oral contracts were not necessariliy unenforceable. As such, contractors owed money pursuant to oral contracts may be able to collect on such contracts and foreclose on mechanic's liens relating to work performed. The Court's decision resolved a split within Illinois' appellate courts.
However, contractors should not risk losing significant money by entering into oral contracts for work of more than $1,000 because compliance with the Act's requirements is relatively inexpensive and easy.
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