Code of Alabama
Ala. Code § 7-2-306 (2026)
Output, Requirements, and Exclusive Dealings.
✓ official Alabama Legislature (ALISON) text, current July 2026
(1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements as may occur in good faith, except that no quantity unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded.
(2) A lawful agreement by either the seller or the buyer for exclusive dealing in the kind of goods concerned imposes unless otherwise agreed an obligation by the seller to use best efforts to supply the goods and by the buyer to use best efforts to promote their sale.
(Acts 1965, No. 549, p. 811.)
Notes of Decisions
Cited in 2
cases, 1981–2012 · leading case: Kirkwood Agri-Trade, a Corp., Cross v. Frosty Land Foods Int'l, Inc., an Alabama Corp., Cross, 650 F.2d 602 (5th Cir. 1981).
Kirkwood Agri-Trade, a Corp., Cross v. Frosty Land Foods Int'l, Inc., an Alabama Corp., Cross, 650 F.2d 602 (5th Cir. 1981). “Ala. Code § 7-2-306 ; see Darden v. Ogle, 293 Ala.”
Global Minerals Corp. v. Nucor Steel Tuscaloosa, Inc., 490 F. App'x 239 (11th Cir. 2012). “The parties agree that the January PO was a requirements contract. In a requirements contract, if an estimate of quantity is given, the buyer may deviate from the stated quantity but must not take an amount “unreasonably disproportionate” to the estimate.”
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