Final answer:
Mr. Smith may be held liable for the value of the garage mistakenly built on his property by Ajax Construction Co.
Step-by-step explanation:
The probable result of the situation described is that Mr. Smith may be held liable for the value of the garage that was mistakenly erected on his property by Ajax Construction Co. Although Mr. Smith did not contract with Ajax for the service, allowing them to continue building the garage on his property can be seen as consent or acceptance of their actions. This is known as quasi-contract or implied-in-law contract, where a court may find that there is an obligation to pay for the value of the benefit received, even in the absence of a formal agreement.
Furthermore, the fact that Mr. Smith wanted a new garage and did not immediately stop Ajax from building it may further strengthen the argument that he accepted the benefit and should pay for it. It is important to note that the specific laws regarding quasi-contract and implied-in-law contract may vary in different jurisdictions, so the actual outcome may depend on the applicable law in the relevant legal system.