KRS 355.2-612: "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) an d 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 whol e.

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.