Question

Jones hired Smith, a general contractor, to build a garage as an addition to Jones' home. Smith hired Adams, a subcontractor, to do the roofing work on this garage. All the work was done satisfactorily, and at the completion of the work, Jones paid Smith the agreed price. However, Smith never paid Adams for her work. Three weeks after Adams finished her work, she filed a mechanics' lien against the property and demands that Jones pays her for her work.
Which of the following is most correct?

a. Jones need not pay Adams because he has already paid in full for the garage.
b. Jones need not pay Adams because Adams' contract was with Smith, not Jones.
c. Jones should pay Adams even though she does not have a valid lien claim because that is the ethical thing to do.
d. Jones should pay Adams because she can enforce her lien claim against the property.

Answer 1

Answer: B. Jones need not pay Adams because Adams' contract was with Smith, not Jones.

Answer 2

Answer:

The correct answer is letter "D": Jones should pay Adams because she can enforce her lien claim against the property.

Explanation:

A mechanics' lien guarantees payments to builders, contractors or subcontractors for work done on a property. In case the owner of the property is not satisfied with the work done the resolution should be established by the very same owner. Properties with liens cannot be sold or refinanced.

Thus, Jones should make the payment to Adams subject to the mechanic's lien but request Smith a refund for the expenses he did not take care of.