Section 2--612. "Installment Contract"; Breach  


Latest version.
  • (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.