§ 554.2612 — “Installment contract” — breach

Iowa § 554.2612

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

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
substantiallyimpairsthevalueofthatinstallmentandcannotbecuredorifthenonconformity

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 the aggrieved party accepts a nonconforming
installment without seasonably notifying of cancellation or if the aggrieved party brings
an action with respect only to past installments or demands performance as to future
installments.

Legislative History

[C24,27,31,35,39,§9974; C46,50,54,58,62,§554.46; C66,71,73,75,77,79,81,§554.2612]