A gardener and a carpenter contracted in writing for the carpenter to repair the gardener's four identical beehives for $500 each. The gardener delivers all four beehives to the carpenter for repair. The carpenter delivered the first two beehives without issue. Upon delivery of the third beehive, the carpenter demanded a payment of $1,500. Is the gardener required to make the demanded payment at this time?

• A. Yes, because payment is due after each completed beehive.
• B. No, because she has no duty to pay until the last beehive is repaired and delivered.
• C. Yes, because the carpenter delivered the first two beehives.
• D. No, because the third was not the fourth.

Answer: (C)

The key idea is that a contract can be divisible into installments, so payment is due for each part as it’s completed and delivered (and accepted) rather than only after the entire job is finished. Here, four beehives are to be repaired for $500 each, so the contract contemplates four separate units of performance.

The carpenter has completed and delivered two beehives without issue, and presumably the gardener accepted them, creating a right to payment for those two units ($1,000). The third beehive has also been delivered, which means three installments are now complete. Under a divisible, per-unit payment arrangement, the gardener owes $500 for the third beehive as well, bringing the total to $1,500. Therefore, demanding payment at this time is appropriate.

If a choice suggested waiting until all four are finished or withheld payment because not all have been completed, that would ignore the per-unit nature of the contract and the fact that partial performance that is accepted creates an immediate right to payment for that portion.