Jeff entered into a building contract with Mike under which Jeff agreed to construct a garage on Mike's lot for $60,000.Lumber Supply Company supplied the lumber at Jeff's request,but when Jeff failed to pay for the material within a few weeks after it was supplied,the Company filed a construction lien for $30,000 against Mike's property.The lumber company has no right of lien because it has a contractual relationship with Jeff only,and must look to Jeff for payment.

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Even though the lumber company has a contractual relationship with Jeff, they still have the right to file a construction lien against the property where the materials were used, as long as they followed the proper legal procedures. The lien is a way for them to have a claim on the property if Jeff fails to pay for the materials.

Jeff Entered into a Building Contract with Mike Under Which