Legal Question in Credit and Debt Law in Alabama

In May 2009 I signed a contract to have my wedding reception in July of 2010. There was suppose to be a deposit for the venue of $1,000. The venue never received the deposit but i did sign the contract. I figured since they never received the deposit the wedding was not going to happen. So a week before July 24, 2010 (which was suppose to be the wedding date) I received a email from the events coordinator saying she needs my menu for the wedding. I had not spoken to the events coordinator since the contract was signed. No emails or anything. So now there making me pay the cancellation fee which is $6,688 (which includes the deposit they never received). Iv been trying to set up payment arrangements to make the payment. They initially said I would have to make $1000 payments every month but when I told them that I could only make a $200 payment every two weeks they said the minimum payment that can be made is $250 every week. This is beyond short notice I haven't heard anything from these people in over a year and now they expect for me to make such a high payment. My question is legally am I held responsible to make the cancellation fee payment and also can they set my payments where they want them to?

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