I just want your advise regarding a contract that i had with a client regarding swimming pool construction. The contract stated that payment terms are:
25% upon signing the contract <--paid
25% completion of milestone 1 <--paid
25% completion of milestone 2 <--paid
20% completion of milestone 3 <--paid
5% test run <-- not paid
The contract also states a warranty clause:
Five (5) years guarantee on the structural work and one (1) year on the finish and (1) year on the equipment against factory defect except for any damage caused either directly or indirectly on the part of the Owner and the natural forces like floods, storms, earthquake,and similar acts of nature. This guarantee is null and void unless all monies owing by the Purchaser/Owner are paid in full. The ancillary equipment remains the property of ***my company*** until all monies due are paid.
After using the pool for many months without paying the last 5% payment, client complain that there was a leak. The warranty clearly states that unless all payments are paid in full, warranty is not applicable in this case.
I would really appreciate your opinion on this. Thank you very much.