When the nonconformity or default substantially impairs the value of the installment but not the value of the entire contract,the buyer can reject the installment,even if the seller gives adequate assurance of the installment's cure.

Question

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Under the Uniform Commercial Code (UCC), if the nonconformity or default of an installment substantially impairs the value of that installment but not the entire contract, the buyer may reject the particular installment. However, if the seller provides adequate assurance of cure, the buyer may not be able to reject the installment based on that nonconformity.

When the Nonconformity or Default Substantially Impairs the Value of the Installment