My name is XXXXX XXXXX I will be assisting you with your legal question.
Pursuant to the terms of the contract, you have the right to withhold the final payment until they have completed the project. If they do not complete the project on a timely basis, then you are guaranteed the return of your money.
What I would recommend is sending the company a certified letter demanding assurances that there will be a timely completion as promised and asking if there is any reason for the delay so far.
If they do not respond, you have the option of terminating the contract and demanding the entire amount back.
Because they have not turned over the work to you yet, it is going to obviously be very difficult to force them to do this so another company can finish the job if you terminate them. Whether you are entitled to the code at this point depends on the exact statements in the contract. Computer code is protected as copyright, so ownership
of the code under a contract must be designated as a work for hire, or the company will retain ownership of the code.
The problems with your case are that it will be hard to assert a loss of potential profits which would be caused by their failure to complete the project, as this would be speculative and hard to prove if you do not have a prior period from which you can compare the profits. If the business is new, this would be particularly difficult to establish. So a lawsuit would likely only result in you getting back the money you paid, or getting in damages the amount it would cost to have another company complete the project.
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