§ 25-2-612. "Installment contract"; breach. - North Carolina Statutes

§25‑2‑612.  "Installment contract"; breach.

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

(2)        The buyer mayreject any installment which is nonconforming if the nonconformitysubstantially impairs the value of that installment and cannot be cured or ifthe nonconformity is a defect in the required documents; but if the nonconformitydoes not fall within subsection (3) and the seller gives adequate assurance ofits cure the buyer must accept that installment.

(3)        Whenevernonconformity or default with respect to one or more installments substantiallyimpairs the value of the whole contract there is a breach of the whole. But theaggrieved party reinstates the contract if he accepts a nonconforminginstallment without seasonably notifying of cancellation or if he brings anaction with respect only to past installments or demands performance as tofuture installments. (1965, c. 700, s. 1.)