Baker Entered into a Building Contract with Able Under Which

question 63

True/False

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.
-The lumber company has no right of lien because it has a contractual relationship with Baker only,and must look to Baker for payment.

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Definitions:

Statute of Limitations

It refers to the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

UCC

Short for Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

Provisional Credit

Temporary credit issued by a bank to an account holder while disputed transactions are under investigation.

Depositary Bank

A bank authorized to hold securities and other assets in custody for others, facilitating trading of securities and other financial transactions.