An owner disputes the drywall contractor's billing and, in response, withholds payment from the roofing contractor as well. The contract is silent. Is that permitted?
Correct Answer
D) No, a dispute does not permit withholding for unaffected work
Section 715.12(6)(e) provides that unless the contract specifically provides to the contrary, a dispute between an obligor and obligee does not permit the obligor to withhold payment from that obligee or from any other obligee for labor, services or materials not subject to or affected by the dispute.
Why This Is the Correct Answer
Section 715.12(6)(e) provides that unless the contract specifically provides to the contrary, a dispute between an obligor and obligee does not permit the obligor to withhold payment from that obligee or from any other obligee for labor, services or materials not subject to or affected by the dispute.
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