HRS §490:2-612
What counts as an installment contract and when a bad delivery breaks the deal
This section explains installment contracts, where goods are delivered in separate lots. A buyer can reject a bad lot if it seriously hurts that lot's value and can't be fixed, or if the paperwork is wrong. If one bad lot seriously hurts the whole deal, the entire contract is breached, unless the buyer keeps accepting lots or only complains about past ones.
buyers
The statute, as written — "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.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.