(A)Eric Richards decided to go into the commercial laundry and dry-cleaning business.He began by agreeing to buy the land, building, and equipment of an existing small dry cleaner.Richards agreed to pay the owner $300,000 in cash and to assume a $150,000 existing mortgage on the property.He next entered into a contract with a local contractor to build, within 5 months, an addition to the building for $250,000.The first $40,000 was paid at the signing of the contract and the balance was to be paid in periodic installments as the construction progressed.Richards asked the contractor to post a security bond to ensure the contract would be completed in a timely manner.Richards also had some of the existing dry-cleaning equipment picked up for repair and refurbishment.When the work was completed, the repairman refused to deliver it until Richards paid in full for the work, claiming he had a lien on the equipment until he was paid. (Hint: Chapter 28).

What legal rights and obligations accompany Richards' assumption of the mortgage?