Code of Alabama - Title 8: Commercial Law and Consumer Protection - Section 8-1-121 - Certain contracts for future delivery void; exceptions

Section 8-1-121 - Certain contracts for future delivery void; exceptions.

(a) All contracts of sale for the future delivery of any commodity, article, personal property, stock or bond, wherein the parties thereto do not intend a delivery of the article contracted for, but do intend to gamble on the difference between the contract price and some subsequent market price, shall be illegal and void, and no action shall be maintained in any court to enforce such contract or to compel payment of any note or security given in payment or settlement of the same.

(b) The provisions of subsection (a) of this section shall not be construed so as to apply to any person, firm, corporation or his or their agent, engaged in the business of manufacturing or wholesale merchandising in the purchase or sale of the necessary commodities required in the ordinary course of their business.

(Code 1907, §§3349, 3350; Acts 1915, No. 791, p. 913; Code 1923, §§6816, 6818; Code 1940, T. 9, §§30, 32.)

Last modified: May 3, 2021