§ 41-02-75 — (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 that 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 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.