Disclaimers in contracts are generally included when one party wants to sell a product or service without any guarantee of its quality (merchantability) or suitability for the buyer’s intended use. Guarantees of a product’s quality or suitability are also known as warranties, and may be implied in the parties’ agreement without being written or spoken—usually by virtue of a state’s statutes adopting the Uniform Commercial Code’s provisions governing the sale of goods (Article 2)—or by court opinions (also known as common law or case law). Some states have laws (statutes) that prohibit the disclaimer of warranties; make disclaimers ineffective; and penalize parties who attempt to disclaim such warranties. Disclaimers in contracts also serve as an explicit warning to the parties of the risks in a sale or transaction and help avoid a subsequent claim that a party was unaware of such risks or was deceived regarding the presence of such risks.

In Alabama, disclaimers in contracts are subject to both the Uniform Commercial Code (UCC) as adopted by the state and relevant case law. Under the UCC, specifically Article 2 which governs the sale of goods, sellers can disclaim implied warranties of merchantability or fitness for a particular purpose, but such disclaimers must be conspicuous and specific. For example, to disclaim the warranty of merchantability, the language must mention 'merchantability' and in the case of a written disclaimer, it must be conspicuous. Disclaimers of the warranty of fitness for a particular purpose must be in writing and conspicuous. Alabama law requires that these disclaimers be presented in a clear and unambiguous manner to be effective. However, there are limitations on disclaiming warranties, and certain types of disclaimers may not be enforceable if they are deemed unconscionable or if they violate other statutory provisions. It is important for parties in Alabama to understand the specific requirements and limitations for contract disclaimers to ensure they are crafting enforceable terms and are aware of the risks involved in the transaction.