Please solve these questions

Case #10 C was a contractor in Idaho. He also did jobs in other nearby states. No requirement that contractors be licensed in Idaho existed, however. C undertook a job for O in Utah, which did have a licensing law. C did not apply for a license. C applied for and received a bond form S. C defaulted, and now S refuses to perform its obligations under the bond. S has offered to refund the premium to O. S claims that the contract between C and O was illegal because C was not licensed. Questions: 1. Should this defense be allowed? Why or Why not? 2. What would be your conclusion if Idaho had a licensing law and C's license had been revoked for fraud and incompetence? 3. Would your conclusion be influenced by whether O knew of the revocation? 4. If so, in what way