Frogurt, LLC wanted to open a frozen yogurt store next to a Dunkin Donuts in a small shopping center. Frogurt leased the space from Real Estate Partners. Frogurt needs to install a series of frozen yogurt machines that will be installed along one wall with significant equipment behind the wall. Frogurt hired Dairy Mist Contracting to do the installation. Frogurt signed the contract for the installation and Dairy Mist completed the work. Frogurt had a clause in the lease with Real Estate Partners that allowed it to undertake the improvements to the property. Frogurt's marketing studies were slightly off and Frogurt was forced to close after four months of operation. Dairy Mist has not been paid and has placed a lien on the shopping center.
Which of the following statements is correct?
A) Dairy Mist can properly lien the shopping center.
B) Dairy Mist can lien the property only if Real Estate Partners signed its contract.
C) Contractors are not permitted to lien the property of landlords for improvements performed for tenants.
D) Dairy Mist will need to establish that a contract relationship exists or that there was consent.
Correct Answer:
Verified
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