J. MILLARD TAWES, Governor                        823

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 non-conforming
if the non-conformity substantially impairs the value of that install-
ment and cannot be cured or if the non-conformity is a defect in the
required documents; but if the non-conformity does not fall within
subsection (3) and the seller gives adequate assurance of its cure
the buyer must accept that installment.

(3)   Whenever non-conformity or default with respect to one or
more installments substantially impairs the value of the whole con-
tract there is a breach of the whole. But the aggrieved party rein-
states the contract if he accepts a non-conforming installment with-
out seasonably notifying of cancellation or if he brings an action with
respect only to past installments or demands performance as to future-
installments.

2—613. Casualty to Identified Goods.

Where the contract requires for its performance goods identified
when the contract is made and the goods suffer casualty without fault
of either party before the risk of loss passes to the buyer, or in a
proper case under a "no arrival, no sale" term (Section 2—324) then

(a)  if the loss is total the contract is avoided; and

(b)  if the loss is partial or the goods have so deteriorated as no
longer to conform to the contract the buyer may nevertheless demand
inspection and at his option either treat the contract as avoided or
accept the goods with due allowance from the contract price for the
deterioration or the deficiency in quantity but without further right
against the seller.

2—614. Substituted Performance.

(1)  Where without fault of either party the agreed berthing,
loading, or unloading facilities fail or an agreed type of carrier be-
comes unavailable or the agreed manner of delivery otherwise be-
comes commercially impracticable but a commercially reasonable sub-
stitute is available, such substitute performance must be tendered
and accepted.

(2)    If the agreed means or manner of payment fails because of
domestic or foreign governmental regulation, the seller may withhold
or stop delivery unless the buyer provides a means or manner of
payment which is commercially a substantial equivalent. If delivery
has already been taken, payment by the means or in the manner
provided by the regulation discharges the buyer's obligation unless
the regulation is discriminatory, oppressive or predatory.

2—615. Excuse by Failure of Presupposed Conditions.

Except so far as a seller may have assumed a greater obligation
and subject to the preceding section on substituted performance:

(a) Delay in delivery or non-delivery in whole or in part by a
seller who complies with paragraphs (b) and (c) is not a breach of
his duty under a contract for sale if performance as agreed has been