In which type of contract is each delivery treated as an independent contract by the UCC?

In an installment contract, each delivery is treated as a separate and independent contract under the Uniform Commercial Code (UCC). This distinction is significant because it allows the parties involved to account for each installment on its own merits regarding performance, acceptance, and potential breach.

The UCC defines an installment contract as one that requires or authorizes the delivery of goods in two or more lots. Each lot is subject to its own terms and conditions, including pricing and acceptance criteria. If one installment is delayed or defaults, it does not automatically affect the other deliveries, allowing for flexibility and a clearer framework for handling performance issues.

In contrast, other types of contracts like fixed price, time and materials, or services agreements generally do not segment deliveries or performances. They often encompass the entirety of the transaction as a single agreement, making accountability across separate deliveries more complex. Thus, recognizing installments as distinct contracts provides clarity and protection for both buyers and sellers in the evolving landscape of supplied goods.