π€
Contracts β’ Performance Under UCC
K#110
Legal Definition
In installment contracts, if the price can be apportioned then the seller may demand payment for each installment.
Plain English Explanation
Generally speaking, the UCC assumes that a contract for goods must be delivered as a whole (in a single lot) unless the contract says that the goods can be delivered in multiple lots. Contracts that can be delivered in multiple lots are called "installment contracts." A seller can demand to be paid for each lot that they deliver if its possible for them to adequately apportion the price. In other words, if someone orders 1,000 identical widgets for $1,000, and those widgets are sent in 10 different shipments, then each lot of widgets would have a quantity of 100. Since they are all the same widget, you can easily apportion the price of each lot: $1,000 divided by 1,000 widgets is $1 per widget. 100 widgets per lot is $100 per lot.
Visual Aids
Related Concepts
How may a buyer revoke acceptance of goods?
What are a buyer's rights to reject goods in an installment contract?
What does the "ability to cure" mean?
What factors limit a buyer's ability to reject goods?
What happens if a seller wishes to cure beyond the time obligated for performance?
What happens if a seller wishes to cure within the time obligated for performance?
What is the buyer's right of inspection?
What is the effect of a buyer accepting goods on his ability to reject them?
What is the perfect tender rule, and what is the consequence of less than perfect tender?
When is the price due in carrier cases, shipment contracts, and destination contracts?
When is the price due in non-carrier cases?