Which Alabama agreements have to be in writing?
Under Ala. Code § 8-9-2, in the listed cases every agreement is void unless the agreement or some note or memorandum of it expressing the consideration is in writing and subscribed by the party to be charged or some other person lawfully authorized in writing. The list includes an agreement that by its terms is not to be performed within one year from the making; a special promise by an executor or administrator to answer damages out of his own estate; a special promise to answer for the debt, default or miscarriage of another; an agreement made upon consideration of marriage except mutual promises to marry; a contract for the sale of lands, tenements or hereditaments or any interest in them, except leases for a term not longer than one year, unless the purchase money or a portion of it is paid and the purchaser is put in possession by the seller; an agreement to make a will or to devise or bequeath property; every agreement or commitment to lend money, delay or forbear repayment of it, or to modify the provisions of such an agreement or commitment, except for consumer loans with a principal amount financed of less than $25,000; and, notwithstanding § 7-8-113, every agreement for the sale or purchase of securities other than through a national stock exchange or the over-the-counter market. For goods, except as otherwise provided in the same section, a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defence unless there is a record sufficient to indicate a contract for sale has been made, signed by the party against whom enforcement is sought or the party's authorized agent or broker, and it is not enforceable beyond the quantity of goods shown (Ala. Code § 7-2-201(1)). Three things take a goods contract out of that requirement even without a signed record: between merchants, a confirming record sufficient against the sender satisfies subsection (1) unless objection is given in a record within 10 days of receipt (§ 7-2-201(2)); and a contract otherwise valid is enforceable where the goods are to be specially manufactured for the buyer and are not suitable for sale to others and the seller has made a substantial beginning of manufacture or commitments for procurement, where the party against whom enforcement is sought admits in pleading, testimony or otherwise in court that a contract for sale was made (and then only up to the quantity admitted), or with respect to goods for which payment has been made and accepted or which have been received and accepted (§ 7-2-201(3)).
The trap
Subdivision (7) is the Alabama trap for commercial lending: an oral commitment to lend, to delay or forbear repayment, or to modify such a commitment is void unless it is a consumer loan with a principal amount financed less than $25,000. The land exception is narrower than it looks: a lease of not more than one year is outside the writing requirement, and part payment takes a sale outside it only when the purchaser is ALSO put in possession by the seller. And the writing must express the consideration and be subscribed by the party to be charged; an agent's authority to subscribe must itself be in writing.
5 authorities
- statuteAla. Code § 8-9-2enactment date not established
The words that state the rule
In the following cases, every agreement is void unless such agreement or some note or memorandum thereof expressing the consideration is in writing and subscribed by the party to be charged therewith or some other person by him thereunto lawfully authorized in writing: (1) Every agreement which, by its terms, is not to be performed within one year from the making thereof; (2) Every special promise by an executor or administrator to answer damages out of his own estate; (3) Every special promise to answer for the debt, default or miscarriage of another; (4) Every agreement, promise or undertaking made upon consideration of marriage, except mutual promises to marry;
- statuteAla. Code § 8-9-2enactment date not established
The words that state the rule
(5) Every contract for the sale of lands, tenements or hereditaments, or of any interest therein, except leases for a term not longer than one year, unless the purchase money, or a portion thereof is paid and the purchaser is put in possession of the land by the seller; (6) Every agreement, contract or promise to make a will or to devise or bequeath any real or personal property or right, title or interest therein;
- statuteAla. Code § 8-9-2enactment date not established
The words that state the rule
(7) Every agreement or commitment to lend money, delay or forebear repayment thereof or to modify the provisions of such an agreement or commitment except for consumer loans with a principal amount financed less than $25,000; (8) Notwithstanding Section 7-8-113, every agreement for the sale or purchase of securities other than through the facilities of a national stock exchange or of the over-the-counter securities market.
- statuteAla. Code § 7-2-201enactment date not established
The words that state the rule
Except as otherwise provided in this section, a contract for the sale of goods for the price of five hundred dollars ($500) or more is not enforceable by way of action or defense unless there is a record sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by the party’s authorized agent or broker. A record is not insufficient because it omits or incorrectly states a term agreed upon, but the contract is not enforceable under this subsection beyond the quantity of goods shown in the record.
- statuteAla. Code § 7-2-201enactment date not established
The words that state the rule
(2) Between merchants if within a reasonable time a record in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against the party unless notice in a record of objection to its contents is given within 10 days after it is received. (3) A contract which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable: (a) If the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller’s business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement; or (b) If the party against whom enforcement is sought admits in the party’s pleading, testimony, or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or (c) With respect to goods for which payment has been made and accepted or which have been received and accepted (Section 7-2-606).
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.