Baker entered into a building contract with Able under which Baker agreed to construct a garage on Able's lot for $6,000.Lumber Supply Company supplied the lumber at Baker's request,but when Baker failed to pay for the material within a few weeks after it was supplied,the Company filed a construction lien for $3,000 against Able's property.
-When Able is notified of the registration of the lien,he must hold back the amount of the lien,or whatever funds he has in his hands at the time,if they are less than the amount of the claim.

Question

Quizplus · Accepted Answer

This is because of the concept of a construction lien, which allows a supplier to place a lien on the property if they have not been paid for their services or materials. Able must hold back the amount of the lien or whatever funds he has in his hands at the time to ensure that the supplier can recover their payment.

Baker Entered into a Building Contract with Able Under Which