Code of Alabama

Ala. Code § 7-2-106 (2026)

Definitions: “Contract”; “Agreement”; “Contract for Sale”; “Sale”; “Present Sale”; “Conforming” to Contract; “Termination”; “Cancellation”; “Hybrid Transaction.”

✓ official Alabama Legislature (ALISON) text, current July 2026

Find cases: SyfertCases citing this section JustiaAla. Code CornellLII Search CasesGoogle Scholar

(1) In this article unless the context otherwise requires “contract” and “agreement” are limited to those relating to the present or future sale of goods. “Contract for sale” includes both a present sale of goods and a contract to sell goods at a future time. A “sale” consists in the passing of title from the seller to the buyer for a price (Section 7-2-401). A “present sale” means a sale which is accomplished by the making of the contract.

(2) Goods or conduct including any part of a performance are “conforming” or “conform to the contract” when they are in accordance with the obligations under the contract.

(3) “Termination” occurs when either party pursuant to a power created by agreement or law puts an end to the contract otherwise than for its breach. On “termination” all obligations which are still executory on both sides are discharged but any right based on prior breach of performance survives.

(4) “Cancellation” occurs when either party puts an end to the contract for breach by the other, and its effect is the same as that of “termination” except that the cancelling party also retains any remedy for breach of the whole contract or any unperformed balance.

(5) “Hybrid transaction” means a single transaction involving a sale of goods and:

(a) the provision of services;

(b) a lease of other goods; or

(Acts 1965, No. 549, p. 811; Act 2023-492, §1.)

Notes of Decisions

Cited in 5 cases, 1980–2013 · leading case: Johnny Ray Sports, Inc. v. Wachovia Bank, 982 So. 2d 1067 (Ala. 2007).

Sort: Relevance Newest Treatment

Johnny Ray Sports, Inc. v. Wachovia Bank, 982 So. 2d 1067 (Ala. 2007). · cites it 3× “) Section 7-2-106 does not distinguish between contracts for the sale of goods at a future time and contracts for the sale of goods at a future time subject to a condition.”

In Re Sitkin Smelting & Refining, Inc. Eastman Kodak Co. v. G. M. Harrison, Tr. & C. I. T. Corp., 639 F.2d 1213 (5th Cir. 1981). · cites it 2× “Ala.Code § 7-2-106 provides in pertinent part: “Contract for sale” includes both a present sale of goods and a contract to sell goods at a future time.”

Butler v. Beer Across Am., 83 F. Supp. 2d 1261 (N.D. Ala. 2000). · cites it 2× “” Ala.Code § 7-2-106(1) (1997); 810 Ill.Comp.”

Alabama Powersport Auction, LLC v. Wiese, 143 So. 3d 713 (Ala. 2013). · cites it 2× “” § 7-2-106(1), Ala.Code 1975 (emphasis added).”

King Coal Co., Inc. v. Garmon, 388 So. 2d 886 (Ala. 1980). “Code 1975, § 7-2-106(1) reads, in part, as follows: ■ “In this article unless , the context otherwise requires ‘contract’ and ‘agreement’ are limited to those relating to the present or future sale of goods.”

— Ala. Code § 7-2-106(1) — 5 cases

Johnny Ray Sports, Inc. v. Wachovia Bank, 982 So. 2d 1067 (Ala. 2007). “) Section 7-2-106 does not distinguish between contracts for the sale of goods at a future time and contracts for the sale of goods at a future time subject to a condition.”

Butler v. Beer Across Am., 83 F. Supp. 2d 1261 (N.D. Ala. 2000). “” Ala.Code § 7-2-106(1) (1997); 810 Ill.Comp.”

Alabama Powersport Auction, LLC v. Wiese, 143 So. 3d 713 (Ala. 2013). “” § 7-2-106(1), Ala.Code 1975 (emphasis added).”

In Re Sitkin Smelting & Refining, Inc. Eastman Kodak Co. v. G. M. Harrison, Tr. & C. I. T. Corp., 639 F.2d 1213 (5th Cir. 1981). “Ala.Code § 7-2-106 provides in pertinent part: “Contract for sale” includes both a present sale of goods and a contract to sell goods at a future time.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.