Code of Alabama

Ala. Code § 7-2-612 (2026)

“Installment Contract”; Breach.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(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.

(Acts 1965, No. 549, p. 811.)

Notes of Decisions

Cited in 3 cases (1 in the last 5 years), 1981–2021 · leading case: Kirkwood Agri-Trade, a Corp., Cross v. Frosty Land Foods Int'l, Inc., an Alabama Corp., Cross, 650 F.2d 602 (5th Cir. 1981).

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Kirkwood Agri-Trade, a Corp., Cross v. Frosty Land Foods Int'l, Inc., an Alabama Corp., Cross, 650 F.2d 602 (5th Cir. 1981). “This aspect of the agreement transforms it into an installment contract, Ala. Code § 7-2-612 . To determine the time Kirkwood learned of the breach, we must identify the time the breach occurred under the rules regarding installment contracts.”

Century Auto. Grp. v. Structure Designs, LLC, 168 So. 3d 64 (Ala. Civ. App. 2014). “Section 7-2-711 provides, in its entirety: "(1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance, then with respect to any goods involved, and with respect to the whole if the breach goes to the whole…”

Exp. Dev. Canada v. Shore Acres Plant Farm, Inc. (S.D. Ala. 2021). “then with respect to any goods directly affected and, if the breach is of the whole contract (Section 7-2-612), then also with respect to the whole undelivered balance, the aggrieved seller may:.”

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