Code of Alabama

Ala. Code § 7-2-204 (2026)

Formation in General.

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

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(1) A contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract.

(2) An agreement sufficient to constitute a contract for sale may be found even though the moment of its making is undetermined.

(3) Even though one or more terms are left open a contract for sale does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy.

(Acts 1965, No. 549, p. 811.)

Notes of Decisions

Cited in 4 cases, 1981–2009 · leading case: Mercedes-Benz U.S. Int'l, Inc. v. Cobasys, LLC, 605 F. Supp. 2d 1189 (N.D. Ala. 2009).

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Mercedes-Benz U.S. Int'l, Inc. v. Cobasys, LLC, 605 F. Supp. 2d 1189 (N.D. Ala. 2009). · cites it 2× “” Ala.Code § 7-2-204(1). This flexibility allows for contracts, even if the exact moment of creation is unclear and even if one or more terms are left open, so long as the circumstances indicate with reasonable certainty that the parties intended to a create a contract.”

Montgomery Rubber & Gasket Co., Inc. v. Belmont Mach. Co., Inc., 308 F. Supp. 2d 1293 (M.D. Ala. 2004). · cites it 2× “See 1975 Ala.Code § 7-2-204 (“A contract for sale of goods may be made in any manner sufficient to show agreement, in- *1301 eluding conduct by both parties which recognizes the existence of such a contract.”

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). “Such an “open price” situation would be governed by Ala.Code §§ 7-2-204 and 7-2-305. Kodak and Sitkin clearly agreed to a specific price setting formula.”

Henig Furs, Inc. v. JC Penney Co., Inc., 811 F. Supp. 1546 (M.D. Ala. 1993). · cites it 2× “The UCC provides that “a contract for the sale of goods may be made in any manner sufficient to show agreement----” Ala.Code § 7-2-204(1) (1975). However, a contract for the sale of goods with a price greater than $500.”

— Ala. Code § 7-2-204(1) — 2 cases

Mercedes-Benz U.S. Int'l, Inc. v. Cobasys, LLC, 605 F. Supp. 2d 1189 (N.D. Ala. 2009). “” Ala.Code § 7-2-204(1). This flexibility allows for contracts, even if the exact moment of creation is unclear and even if one or more terms are left open, so long as the circumstances indicate with reasonable certainty that the parties intended to a create a contract.”

Henig Furs, Inc. v. JC Penney Co., Inc., 811 F. Supp. 1546 (M.D. Ala. 1993). “The UCC provides that “a contract for the sale of goods may be made in any manner sufficient to show agreement----” Ala.Code § 7-2-204(1) (1975). However, a contract for the sale of goods with a price greater than $500.”

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