Sec. 42a-2-612. "Installment contract"; breach.
Sec. 42a-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 nonconforming if the nonconformity substantially impairs the value of that installment and cannot be cured or if the
nonconformity is a defect in the required documents; but if the nonconformity does not
fall within subsection (3) and the seller gives adequate assurance of its cure the buyer
must accept that installment.
(3) Whenever nonconformity 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 nonconforming 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.
(1959, P.A. 133, S. 2-612.)
Annotations to former statute (1958 Rev., S. 42-45):
Custom not to deliver installment until previous one had been paid for considered. 82 C. 116. Failure to accept installment
held sufficient to justify vendor in failing to make further deliveries. 88 C. 26. Parties may so treat contract as to make it
severable though originally entire. 93 C. 688. Wrongful refusal to pay for one carload held to justify refusal to deliver
further carloads. 95 C. 533. Seller's refusal to deliver installment of coal sold on credit until previous installment had been
paid for held unjustified. 97 C. 119. Acceptance of defective installment and retention of goods operates as acceptance of
such installment in part fulfillment of order. Id., 487. Defect in quality of installment held to justify repudiation by buyer
of entire contract. 102 C. 551. Facts held to show delivery in installments were intended. 106 C. 377.
Annotations to present section:
Cited. 165 C. 300. Cited. 183 C. 266.
Subsec. (3):
Seller's remedy to cancel is not waived by a lawsuit seeking recovery for payments due where it is seller's intention
to bring the contract to an end. 180 C. 714. Cited. 202 C. 277.