An architect firm designed a condo project but wasn't paid. Instead of cash, the architect agreed to accept a condo unit as payment. When the developer couldn't deliver the unit (it was pledged as loan collateral), the architect filed a mechanic's lien for the original design fee. The Tennessee Supreme Court ruled that a jury must decide whether the parties actually intended to replace the original contract with the new condo agreement. This means the case goes back to trial—summary judgment was improper.
When you agree to accept something other than cash as payment (like property or equity), document that agreement clearly in writing to avoid disputes about whether the original contract still applies.
A verbal or informal agreement to substitute payment methods may not automatically cancel your right to file a lien for the original fee—courts will look at what both parties actually intended.