Is this Client Behavior Acceptable

[#1]

Found at the end of a job description today:  Does not seem ethical, perhaps against TOS? 

Do you think it is innappropriate?

"It's important to note, I will not pay for time spent if you cannot fix it."

[#2]

I don't think it is against TOS - but I would not work with such a client.

[#3]

As far as it is explained upfront i think this sounds like a typical fixed price job. So all requirements are pre defined (definition of fix), and if you can't deliver it you don't get paid for a fixed price job right? How is this any different? 

[#4]

Time spent suggests an hourly contract. Hourly work is not performance-based. The client pays for whatever work you put in on the project as long as you are properly using the time tracker. 

This client is doing you a favor, though, by telling you that they are looking to cheat you before you ever get involved. Take the warning.