Under installment contracts, a buyer may reject for which reason?

• A. Non-delivery
• B. Substantial impairment
• C. Minor defect
• D. Any defect

Answer: (B)

In installment contracts, performance is delivered in parts, and the buyer’s power to reject is limited to a nonconforming installment that substantially impairs the value of that installment and cannot be cured. This means minor defects or issues that the seller can reasonably fix, or that don’t drastically affect the value, aren’t enough to reject. If the defect is serious and cannot be cured, the buyer may reject that installment and the seller may have an opportunity to cure if time remains. Non-delivery is a broader breach affecting the whole contract rather than a single installment’s acceptance or rejection, and a defect that’s not substantial won’t justify rejection. So substantial impairment best explains when a buyer may reject in an installment contract.