Installment Contracts

Installment Contracts

Installment Contracts can be rejected if:

§ Installment is substantially non-conforming and can’t be cured.

§ Non-conforming installment substantially impairs the entire contract.

Destruction of Goods

If no fault of either party and it occurs,

Before risk passes to Buyer then,

Both Seller and Buyer are excused from performance.

Partial Performance

Sometimes unforeseen event only partially affects Seller’s capacity to perform.

In that event, Seller has duty to reasonably allocate any remaining production capacity to fulfilling contractual performance.

Buyer has the right to reject.

Case 21.2: Kock Materials Co. v. Shore Slurry Seal, Inc.  (2002).