October 2, 2010
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Question:
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Ken:
I have a very demanding customer that signed your CCTV agreement. They paid me nothing in advance. The DVR has crashed several times and been replaced by the manufacturer.
They have told me if it happens one more time that they want me to take out the entire system and pay me nothing.
First, can they do this?
Second, if they do, do I have any recourse with the manufacturer?
Thanks for your forum.
John
Security Solutions
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Answer:
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You obviously are not enforcing the CCTV contract that was signed. That's your fault. Paragraph 3 required a payment on signing the contract and the balance of installation charges when installation was completed. That same paragraph requires monthly payments for 10 years, and if not paid paragraph 18 provides for liquidated damages of 80% of the balance of all payments, plus legal fees.
Paragraph 12 requires that the subscriber test the system and notify you if service is required. Only after a written notice served by certified mail is sent to you can the subscriber suspend the monthly payments until the system is repaired.
If you won't enforce the contract do you expect the subscriber to enforce it for you?
You seem to be having a problem with the DVR. Send it back and get a new one. Try a different manufacturer. The subscriber is entitled to a working system, or at least would be if the installation charges were paid, which here they weren't.
The manufacturer is most likely not responsible for your subscriber problems, especially since you didn't follow the contract by getting paid at time of installation. If the manufacturer knew that it's DVR didn't work and sold it anyway, then it would have liability to you. Otherwise, the terms of the sale of that DVR from the manufacturer most certainly limited the manufacturer's duty to repair the unit.