Installment Shipments Law and Legal Definition

The term installment shipment means shipping an order in different batches and on different periods stipulated in the letter of credit. Installment shipping has to be made within the stipulated period mentioned in the letter of credit. In such cases, failure to ship any installment within the period allowed will render the letter of credit inoperative for that installment and any subsequent installments, unless it is otherwise stipulated in the letter of credit.