Question

Johnson, Inc. a builder enters into an agreement to construct a commercial building in a residential area in violation of zoning laws. Johnson hires a crew of construction workers to build the building. Subsequently, the local government stops the construction.
1. Which of the following is true with respect to the payment of the construction workers by Johnson?
O Even if the construction workers were aware that the building project violated zoning laws they are entitled to pay pursuant to a quasi-contract.
O Since the building project was illegal, Johnson has no obligation to pay the construction workers.
O None of the alternatives are correct.

Answer 1

None of the alternatives are correct.

Explanation:

When a builder enters into an agreement to construct a commercial building in the residential areas that violates the laws , as a result the government stops construction. If such a scenario occurs the workers will not be paid as the construction process has stopped, so no productivity will take place and thus the workers will have to face the scenario.

While signing a contract the contractor must have proper knowledge regarding the property. Otherwise the workers will not be able to earn their daily wage.