Tennessee Code Annotated

Tenn. Code Ann. § 47-2-612 (2026)

"Installment contract" - Breach

✓ current as of May 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 (1) 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 1963, ch. 81, § 1 (2-612).

Notes of Decisions

Cited in 4 cases, 1999–2013 · leading case: Mold-Tech USA, LLC v. Holley Performance Prods., Inc. (Tenn. Ct. App. 2005).

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Mold-Tech USA, LLC v. Holley Performance Prods., Inc. (Tenn. Ct. App. 2005). · cites it 12× “*** Tenn. Code Ann. § 47-2-612 (2001) (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.”

Banco Int'l, Inc. v. Goody's Fam. Clothing, 54 F. Supp. 2d 765 (E.D. Tenn. 1999). · cites it 4× “T.C.A. § 47-2-612; see also Corbin, Corbin on Contracts § 975 at 963 (One Yol.”

Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). · cites it 2× “On the other hand, BCA contends that its building of the three boats was pursuant to a single contractual relationship with Villas-Afloat, arguing that its relationship with Villas-Afloat was an installment contract under the Uniform Commercial Code, Tenn. Code Ann. § 47-2-612…”

3L Commc'ns L.L.C. v. Jodi Merola, Individually, & d/b/a NY Telecom Supply (Tenn. Ct. App. 2013). “Tennessee Code Annotated Section 47-2-601 provides: Subject to the provisions of this chapter on breach in installment contracts (§ 47-2-612) and unless otherwise agreed under the sections on contractual limitations of remedy (§§ 47-2-718 and 47-2-719), if the goods or the…”

— Tenn. Code Ann. § 47-2-612(3) — 1 case

Mold-Tech USA, LLC v. Holley Performance Prods., Inc. (Tenn. Ct. App. 2005). “*** Tenn. Code Ann. § 47-2-612 (2001) (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.”

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