(a) Except as otherwise provided in this section, when a transaction bears a reasonable relation to this state and also to another state or nation the parties may agree that the law either of this state or of such other state or nation shall govern their rights and duties.
(b) In the absence of an agreement effective under subsection (a), and except as provided in subsection (c), this title applies to transactions bearing an appropriate relation to this state.
(c) If one of the following provisions of this title specifies the applicable law, that provision governs and a contrary agreement is effective only to the extent permitted by the law so specified:
(1) Section 7-2-402;
(2) Sections 7-2A-105 and 7-2A-106;
(3) Section 7-4-102;
(4) Section 7-4A-507;
(5) Section 7-5-116;
(6) Section 7-8-110;
(7) Sections 7-9A-301 through 7-9A-307.
Structure Code of Alabama
Article 1 - General Provisions.
Part 3 - Territorial Applicability; Parties' Power to Choose Applicable Law.
Section 7-1-301 - Territorial Applicability; Parties' Power to Choose Applicable Law.
Section 7-1-302 - Variation by Agreement.
Section 7-1-303 - Course of Performance, Course of Dealing, and Usage of Trade.
Section 7-1-304 - Obligation of Good Faith.
Section 7-1-305 - Remedies to Be Liberally Administered.
Section 7-1-306 - Waiver or Renunciation of Claim or Right After Breach.
Section 7-1-307 - Prima Facie Evidence by Third-Party Documents.
Section 7-1-308 - Performance or Acceptance Under Reservation of Rights.