Delivery by installment [sec 38] unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installments. If the parties so agree then only the delivery of the goods may be made by installments.
When the parties agree that to be separately paid for, and either buyer or seller commits a breach of contract in respect of one or more installments, there arises a question as to whether such a breach amounts to a breach of the whole of the contract or a breach of only a part of it? The answer to this question depends upon the terms of the contract and the circumstances of the case, unless otherwise agreed the following two factors must be borne in mind in deciding the whole matter.
(a) The quantitative proportion which the breach bears to the contract as a whole, and
(b) The degree of probability of the repetition of the breach (Maple Flock co.Ltd..vs Universal Furniture products Ltd.)
Generally, failure to deliver or pay for one installment does not amount to a breach of the whole contract, unless from the special circumstances of the case (e.g., the factory is closed because of a labour strike or the buyer become insolvent) it can be inferred that similar breaches will be repeated.
Illustration A sold to B 1,500 tons of meat of a specified quality to be shipped 125 tons monthly in equal weekly installments. After about half the meat was delivered and paid for, B discovered that it was not of the contract quality and could have been rejected, and therefore he refused to take further deliveries. Held, that B was entitled to do so (Robert A. Munroe & Co,Ltd. Vs Meyer). (if B might have discovered the defect just after first installment, he would not have been allowed to repudiate the whole contract but only the damages for the loss in that particular installment delivery would have been allowed.
When the parties agree that to be separately paid for, and either buyer or seller commits a breach of contract in respect of one or more installments, there arises a question as to whether such a breach amounts to a breach of the whole of the contract or a breach of only a part of it? The answer to this question depends upon the terms of the contract and the circumstances of the case, unless otherwise agreed the following two factors must be borne in mind in deciding the whole matter.
(a) The quantitative proportion which the breach bears to the contract as a whole, and
(b) The degree of probability of the repetition of the breach (Maple Flock co.Ltd..vs Universal Furniture products Ltd.)
Generally, failure to deliver or pay for one installment does not amount to a breach of the whole contract, unless from the special circumstances of the case (e.g., the factory is closed because of a labour strike or the buyer become insolvent) it can be inferred that similar breaches will be repeated.
Illustration A sold to B 1,500 tons of meat of a specified quality to be shipped 125 tons monthly in equal weekly installments. After about half the meat was delivered and paid for, B discovered that it was not of the contract quality and could have been rejected, and therefore he refused to take further deliveries. Held, that B was entitled to do so (Robert A. Munroe & Co,Ltd. Vs Meyer). (if B might have discovered the defect just after first installment, he would not have been allowed to repudiate the whole contract but only the damages for the loss in that particular installment delivery would have been allowed.
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