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Question DetailsAsked on 11/16/2017

If a contract says a payment installment is 'due upon delivery' does that mean to my house or HIS warehouse?

We paid a deposit for a sliding glass door and agreed to 3 part payment installments. Now they are asking for the second installment because the contract says 'due upon delivery'. He claims the 'upon delivery' doesn't mean delivery to my house but HIS warehouse. He wants this 2nd payment now and schedule the installation 3 weeks from now.
Is this 'upon delivery' standard practice?

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To me the place of contract service is your house (presumably), so I would say means when delivered to your house. You don't say how big the payments are (or if equal), but you don't want him getting well ahead of you on payments - which presumably he would be if you make a second payment and (presumably) no work has been done yet AND he is holding the door. I think you are in a strong position to dstick by a delivery to your house position unless the contract says otherwise.


So I would say second payment, assuming door is a higher-end one so the door (including his markup on it) is around the typical 2/3 of the total job cost, should be payable when delivered to the jobsite - for installation or if necessary for a short storage time (assuming you have reasonable secure room for the storge). And of course, it needs to be in locked area (indoors) and well protected against damage from car door impact, pets, kids, falling over due to earthquake or being bumped into, etc - because once it is in your house that makes YOU responsiblee to safeguard it against breakage or theft till he moves it to start installation.


If you do pay and let HIM store it in his warehouse/shop, that leaves the responsibility for breakage or theft on him - but also means if he is not honest he could abscond with it or sell it out from under you and you end up shorted (though covered by his insurance - he does have insurance, right ?). Also means, unless you go and actually put eyes on it, you do not know if it actually came in - so more scam risk if you do pay him now and let him hold it. Ditto if he happens to go bankrupt or gets bought out - unless you have written and dated/signed invoice/receipt from him stating it has been paid for in full and has your name on it and is marked PAID on the wrapping, in a bankruptcy or business assumption you would probably lose it. So IF you do let him hang onto it get a PAID IN FULL invoice for the door unit and make sure it is clearly marked on the wrapping as UNIT PAID IN FULL or such phrasing and your name and address and phone number on it.

Answered 1 year ago by LCD




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