Title 8

An “accord” is an agreement to accept in extinction of an obligation something different from or less than that to which the person agreeing to accept is claiming or entitled. (Code 1923, §5640; Code 1940, T. 9, §1.)

Though the parties to an accord are bound to execute it, it does not extinguish the obligation until it is fully executed. (Code 1923, §5641; Code 1940, T. 9, §2.)

Acceptance of the consideration of an accord extinguishes the obligation and is called satisfaction. (Code 1923, §5642; Code 1940, T. 9, §3.)

An obligation is extinguished by a release therefrom given to the debtor by the creditor upon a new consideration or in writing with or without new consideration. (Code 1923, §5643; Code 1940, T. 9, §4.)

Specific performance cannot be enforced against a party to a contract in any of the following cases: (1) If he has not received an adequate consideration for the contract; (2) If it is not, as to him, just and reasonable; (3) If his assent was obtained by the misrepresentation, c…

The following obligations cannot be specifically enforced: (1) An obligation to render personal service; (2) An obligation to employ another in personal service; (3) An agreement to submit a controversy to arbitration; (4) An agreement to perform an act which the party has not po…

Specific performance cannot be enforced in favor of a party who has not fully and fairly performed all the conditions precedent on his part to the obligation of the other party, except where his failure to perform is only partial and either entirely immaterial or capable of being…

Neither party to an obligation can be compelled specifically to perform it unless the other party thereto has performed or is compelled specifically to perform everything to which the former is entitled under the same obligation, either completely or nearly so, with full compensa…

A party who has signed a written contract may be compelled specifically to perform it, though the other party has not signed it, if the latter has performed, or offers to perform, it on his part and the case is otherwise proper for enforcing specific performance. (Code 1923, §683…

A contract otherwise proper to be specifically enforced may be thus enforced, though a penalty is imposed or the damages are liquidated for its breach and the party in default is willing to pay the same. (Code 1923, §6832; Code 1940, T. 9, §54.)

Whenever an obligation in respect to real property would be specifically enforced against a particular person, it may be in like manner enforced against any other person claiming under him by a title created subsequently to the obligation, except a purchaser or encumbrancer in go…

It is to be presumed that the breach of an agreement to transfer real property cannot be adequately relieved by pecuniary compensation and that the breach of an agreement to transfer personal property can be thus relieved. (Code 1923, §6830; Code 1940, T. 9, §52.)

When a thing is let for a particular purpose, the lessee must not use it for any other purpose; and if he does, he is liable to the lessor for all damages resulting from such use, or the lessor may treat the contract as thereby rescinded. (Code 1923, §6273; Code 1940, T. 9, §7.)

The lessee of a thing must use ordinary care for its preservation in safety and good condition. (Code 1923, §6271; Code 1940, T. 9, §5.)

The lessee of a thing must repair all deteriorations or injuries thereto occasioned by the want of ordinary care. (Code 1923, §6272; Code 1940, T. 9, §6.)

The lessor of a thing may terminate the hiring and reclaim the thing before the end of the term agreed upon: (1) When the lessee uses or permits a use of the thing hired in a manner contrary to the agreement of the parties; or (2) When the lessee does not, within a reasonable tim…

No person shall receive, directly or indirectly, any money or thing of value in consideration of bidding or not bidding at any public sale within this state. (Code 1852, §1557; Code 1867, §1869; Code 1876, §2127; Code 1886, §1738; Code 1896, §2159; Code 1907, §3334; Code 1923, §6…

No person shall bid off any of the public lands within this state under an agreement, previously made, to transfer the same, or any part thereof, or interest therein, for a premium or advance to be paid therefor. (Code 1852, §1558; Code 1867, §1870; Code 1876, §2128; Code 1886, §…

(a) All contracts in violation of the provisions of Sections 8-1-100 and 8-1-101 are void. (b) Any person violating such provisions forfeits double the amount of money or value of the thing received, agreed to be received or paid, to the use of the person suing for the same, and …

Nothing in Sections 8-1-100 and 8-1-101 must be so construed as to prevent any person who has made improvements on public lands from selling the same and receiving the purchase money therefor. (Code 1852, §1561; Code 1867, §1873; Code 1876, §2130; Code 1886, §1741; Code 1896, §21…

For the purposes of this article, the following terms shall have the meanings respectively ascribed to them by this section: (1) CONTRACT OF SALE. Such term shall include sales, agreements of sale, and agreements to sell. (2) PERSON. Such term shall be construed to import the plu…

(a) All contracts of sale for the future delivery of any commodity, article, personal property, stock or bond, wherein the parties thereto do not intend a delivery of the article contracted for, but do intend to gamble on the difference between the contract price and some subsequ…

Every person shall furnish, upon demand, to any principal for whom such person has executed any order for the actual purchase or sale of any commodities, stocks, or bonds for future delivery, a written statement containing the names of the persons from whom such property was boug…

Proof that anything of value agreed to be sold and delivered was not actually delivered at the time of making the agreement to sell and deliver and that one of the parties to such agreement deposited or secured, or agreed to deposit or secure, what are commonly called “margins” s…

Proof of the fact that any contract for the future delivery of cotton was not made subject to the provisions of any federal statute relating thereto, including such amendments as may hereafter be made to such statutes by Congress, shall be prima facie evidence of an illegal contr…

If any person shall become a party to any contract for the sale and future delivery of any article or personal property in which it is not intended by the parties thereto that such property shall be actually delivered, but rather the difference between the contract price and the …

(a) Any person, either as agent or principal, who enters into or assists in making any contract of sale for the future delivery of any commodity, article, personal property, stock or bond, wherein no delivery is intended by the parties thereto, and uses as a basis for fixing the …

If any person shall consent while in this state to become a party to any futures contract contrary to Section 8-1-126, made in another state, or if any person shall become, as agent of any person or corporation, a party to any such contract made in another state or in this state …

If any person, corporation or other association of persons, either as principals or agents, shall establish or open an office or other place of business in this state for the purpose of carrying on or engaging in any business of making contracts to sell and deliver any cotton, In…

Proof that any person, corporation, or other association of persons, either as principals or agents, has established an office or place where are posted or published from information received the fluctuating prices of grain, cotton, provisions, stocks, bonds, and other commoditie…

(a) No person shall be excused on any prosecution under this article from testifying touching anything done by himself or others contrary to the provisions of this article; but no disclosures made by the witness upon such examination shall be used against him in any penal or crim…

Any money or thing paid or delivered to any person whether as principal, agent, or broker in furtherance or settlement of any contract made in violation of this article may be recovered in any action brought by the person paying the same, his wife, or child. (Code 1907, §3353; Co…

(a) All contracts founded in whole or in part on a gambling consideration are void. Any person who has paid any money or delivered any thing of value lost upon any game or wager may recover such money, thing, or its value by an action commenced within six months from the time of …

(a) Any creditor of a losing party under a gambling contract may garnish the winner as other debtors are garnished at any time within two years from the payment of such money or delivery of such thing, and if such garnishee fails to appear, judgment may be entered against him as …

In any action brought under the provisions of this article either party may be examined on interrogatories as in other cases, but the answer of the party cannot be used against him in any criminal prosecution. (Code 1852, §1570; Code 1867, §1881; Code 1876, §2137; Code 1886, §174…

Except as provided in Sections 8-1-171 and 8-1-172, and contracts of fire and tornado insurance wherein the insane person is the beneficiary, all contracts of an insane person are void; but he and his estate shall be liable for necessaries furnished him, which may be recovered up…

(a) Whenever any person shall purchase in good faith and for a valuable consideration real estate from an insane person without notice of such insanity, such contract and conveyance shall not be void; but such insane person may recover from the vendee, or those claiming under him…

(a) When any person shall in good faith take a mortgage on real estate from an insane person without notice of the insanity, the mortgage deed shall not be void; but the insane person may redeem the property so mortgaged at any time prior to a foreclosure by paying to the mortgag…

(a) Every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind otherwise than is provided by this section is to that extent void. (b) Except as otherwise prohibited by law, the following contracts are allowed to preserve a pro…

(a) A protectable interest includes all of the following: (1) Trade secrets, as defined in Section 8-27-2. (2) Confidential information, including, but not limited to, pricing information and methodology; compensation; customer lists; customer data and information; mailing lists;…

In order to be valid, any contract or agreement executed pursuant to this article shall be reduced to writing, signed by all parties, and be supported by adequate consideration. (Act 2015-465, §3.)

If a contractually specified restraint is overly broad or unreasonable in its duration, a court may void the restraint in part and reform it to preserve the protectable interest or interests. If a contractually specified restraint does not fall within the limited exceptions set o…

The party seeking enforcement of the covenant has the burden of proof on every element. The party resisting enforcement of the covenant has the burden of proving the existence of undue hardship, if raised as a defense. (Act 2015-465, §5.)

(a) The remedies available for breach of an agreement subject to this article are: (1) Such injunctive and other equitable relief as may be appropriate with respect to any actual or threatened breach. (2) The actual damages suffered as a result of the breach or lawful liquidated …

Nothing in this article shall be construed to eliminate any professional exemption recognized by Alabama law. (Act 2015-465, §7.)

It is hereby declared that this article expresses fundamental public policies of the State of Alabama. Therefore, this article shall govern and shall be applied instead of any foreign laws that might otherwise be applicable in those instances when the application of those foreign…