Hello,
I have a situation where a customer has asked us to repair 3 components in Jan 2017.
All 3 components were repaired quickly at the request of the customer. Two of the components are still working fine today.
The 3rd component,as a part of the repair, we were asked to modify away from the manufacturers dimensions at the request of the customer. We delivered the component but it was found the next day that we had made a mistake in applying the new dimensions. The component was quickly returned and again we urgently modified the component and delivered it to the customer.
A few days later, the component failed. The fault was assumed to be warranty, but we had doubts, and felt something else had caused the damage during installation. Again, in good faith, and trying to look after a new customer, we repaired the component urgently.
All went well this time and we invoiced the customer as usual only to be met with a refusal to pay on the grounds that the extra time and costs involved in removal and re installation were approx the same as the invoice value of all 3 components.
Emails have been back and forth but the customer wouldn't budge. The customer finally agreed to pay approx 40% of the total of all 3 repairs, and we agreed to accept and put it behind us.
Approx. One week after the agreement was made, the modified component failed again some 8 months later. (Our industry standard warranty terms are 3 months/5000Hrs) The customer again assumes we are at fault and again refuses to pay.
The questions are:
When does the legal title pass to a customer who has not paid for the service?
Are we legally obliged to continue repairing the component before we receive any payment? (All 3 components have now been in service well past their warranty expiry dates.)
Are we legally entitled to push for payment before further warranty assessment and consideration?
I have a situation where a customer has asked us to repair 3 components in Jan 2017.
All 3 components were repaired quickly at the request of the customer. Two of the components are still working fine today.
The 3rd component,as a part of the repair, we were asked to modify away from the manufacturers dimensions at the request of the customer. We delivered the component but it was found the next day that we had made a mistake in applying the new dimensions. The component was quickly returned and again we urgently modified the component and delivered it to the customer.
A few days later, the component failed. The fault was assumed to be warranty, but we had doubts, and felt something else had caused the damage during installation. Again, in good faith, and trying to look after a new customer, we repaired the component urgently.
All went well this time and we invoiced the customer as usual only to be met with a refusal to pay on the grounds that the extra time and costs involved in removal and re installation were approx the same as the invoice value of all 3 components.
Emails have been back and forth but the customer wouldn't budge. The customer finally agreed to pay approx 40% of the total of all 3 repairs, and we agreed to accept and put it behind us.
Approx. One week after the agreement was made, the modified component failed again some 8 months later. (Our industry standard warranty terms are 3 months/5000Hrs) The customer again assumes we are at fault and again refuses to pay.
The questions are:
When does the legal title pass to a customer who has not paid for the service?
Are we legally obliged to continue repairing the component before we receive any payment? (All 3 components have now been in service well past their warranty expiry dates.)
Are we legally entitled to push for payment before further warranty assessment and consideration?
