§490:2-612  "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 which
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 he accepts a nonconforming installment without
seasonably notifying of cancellation or if he brings an action with respect
only to past installments or demands performance as to future installments. [L
1965, c 208, §2-612; HRS §490:2-612]