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D is corrent because if a contract violates a regulatory licensing statute, it will be unenforceable by either party. The main function of a regulatory licensing statute is to protect the public against unskilled or dishonest persons. Another type of licensing statute is a revenue-seeking statute. The purpose of these types of statutes generally is to gain revenue for the governmental unit issuing the license. A contract that violates a revenue-seeking statute is enforceable. In this case, the facts stipulate that a regulatory licensing statute is violated. Consequently, Aqua may not enforce the agreement.
A is incorrect because Aqua, Inc. has violated a regulatory statute which will prevent either party from enforcing the contract. Since Aqua will be unable to enforce the contract, they will recover nothing.
B is incorrect because Aqua, Inc. has violated a regulatory licensing statute which makes the contract unenforceable by either party. If the statute had been revenue-seeking in nature rather than regulatory, Aqua would have been able to enforce the contract and receive the full $30,000 agreed to in the contract.
C is incorrect because Aqua, Inc. has violated a regulatory licensing statute and the contract is unenforceable by either party. Had the licensing statute been revenue-seeking rather than regulatory in nature, Aqua would have been able to enforce the contract and recover $30,000.