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Alabama is well-known for being a business-friendly state. This is partly due to its straightforward processing of resolving business contract disputes.

The law allows flexibility for employers, buyers, sellers, and business partners in concluding agreements to engage in transactions together.

Those who enter an agreement in good faith are not always guaranteed a smooth and agreeable process. This is why Alabama’s law on breach of contract allows for resolution without resorting to litigation.

What Falls under Breach of Contract in Alabama?

Contracts are legally binding agreements between two or more parties. They are generally intended to result in the exchange of money or property for services rendered or agreed upon.

A contract is breached when one or more of the parties do not fulfill the agreement’s obligations. This is where the law enters to help resolve the dispute.

The breach is usually dependent on the nature of the contract. Breach of contract is commonly broken down into two types: negligence and misrepresentation. Both types of contract breaches occur when one party fails to perform to the standard of care required by law.

How to Resolve Breach of Contract Disputes

The state of Alabama has legislated a way to resolve contract disputes. This is through the Alabama Uniform Arbitration Act. The Act allows a group of arbitrators to intervene if the parties in a case are unable to achieve a mutually acceptable agreement.

The Act requires that both parties in a dispute take part in the arbitration process. Once the arbitrators have been selected, both parties will be given a copy of the complaint. The arbitrators will then determine which rules of evidence should apply to the case. The arbitrator will also determine the location of the arbitration proceedings.

How to File a Breach of Contract Lawsuit in Alabama

If the arbitration process has not resulted in a quick and favorable resolution of the dispute, the Uniform Arbitration Act allows the parties to file a lawsuit. This is done by making a petition to the county court where either party resides. This is called an ex parte petition. The petition will include the pertinent details of the case and will request a judgment.

What Are the Remedies Available for Breach of Contract in Alabama?

A business contract dispute can be resolved in one of two ways. They are legal relief and equitable relief. Legal relief is nothing more than monetary compensation for the damages sustained by the plaintiff. This is done by requiring the defendant to make payments to the plaintiff. The court usually determines the amount.

On the other hand, equitable relief is the use of a court order to make one party honor the contract. This is usually done by forcing them to do what is set out in the agreement.


Breach of contract is a legal term that describes a situation where one party fails to perform the contract terms. The law allows for arbitration and lawsuits to enforce the terms of an agreement.

If you live in Alabama and want to learn more about the process of breach of contract, you can always contact a local business law attorney.

The lawyers of McCallum, Hoaglund & McCallum, LLP or MHM Firm bring more than 75 years of experience to the practice of law in Birmingham, Alabama. 

We passionately seek justice for our clients in state and federal courts in areas ranging from complex business litigation, medical malpractice defense, insurance defense, and products liability to commercial litigation, construction law, securities and contracts litigation, employment litigation, and so on.

If you need an attorney at law in Birmingham, AL, concerning a breach of contract lawsuit, get in touch with us today! Let us know how we can help.