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This entry was published on 2014-09-22
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SECTION 2-612
"Installment Contract"; Breach
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 6
Section 2--612. "Installment Contract"; Breach.

(1) An "installment contract" is one which requires or authorizes the
delivery of goods in separate lots to be separately accepted, even
though the contract contains a clause "each delivery is a separate
contract" or its equivalent.

(2) The buyer may reject any installment which is non-conforming if
the non-conformity substantially impairs the value of that installment
and cannot be cured or if the non-conformity is a defect in the required
documents; but if the non-conformity does not fall within subsection (3)
and the seller gives adequate assurance of its cure the buyer must
accept that installment.

(3) Whenever non-conformity or default with respect to one or more
installments substantially impairs the value of the whole contract there
is a breach of the whole. But the aggrieved party reinstates the
contract if he accepts a non-conforming installment without seasonably
notifying of cancellation or if he brings an action with respect only to
past installments or demands performance as to future installments.