Verbal Contracts in Michigan: Understanding the Basics
A verbal contract, also known as an oral contract, is a legally binding agreement made between two parties without any written documentation. While verbal contracts are common in everyday life, they can be difficult to enforce in a court of law. This is especially true in states like Michigan, where verbal contracts may not always hold up in court. In this article, we’ll explore the basics of verbal contracts in Michigan and what you need to know to protect yourself.
Elements of a Verbal Contract
To be enforceable, a verbal contract must contain several elements. First, there must be a clear offer and acceptance between the parties. This means that one person offers to do something, and the other person agrees to accept the offer. Second, there must be consideration, which means that each party must give something of value in exchange for the other’s promise. Finally, the terms of the agreement must be clear and specific. If any of these elements are missing, the contract may not be enforceable.
Enforcing a Verbal Contract in Michigan
While verbal contracts are enforceable in Michigan, they can be difficult to prove in court. This is because there is no written documentation to provide evidence of the agreement. To enforce a verbal contract, the party seeking to enforce the contract must provide evidence of the agreement. This evidence can include witness testimony, emails, text messages, or any other documentation that supports the existence of the contract.
It is also important to note that certain types of contracts must be in writing to be enforceable in Michigan. These include contracts for the sale of real property, contracts that cannot be performed within one year, and contracts for the sale of goods over $500. If your verbal contract falls into one of these categories, it will not be enforceable in court.
Protecting Yourself
To protect yourself when entering into a verbal contract in Michigan, it is important to create a clear and specific agreement. Make sure that all important terms of the agreement are discussed and agreed upon by both parties. You may also want to consider documenting the agreement in writing, even if it is just an email or text message. This will provide you with evidence of the agreement if you need to enforce it in court.
It is also important to work with trustworthy and reliable individuals when entering into a verbal contract. Make sure that you are comfortable with the other party and that they have a good reputation. Doing your due diligence upfront can save you a lot of trouble and headaches down the line.
Conclusion
While verbal contracts can be difficult to enforce in Michigan, they are still legally binding agreements. To protect yourself when entering into a verbal contract, make sure that the agreement includes all necessary elements and is clear and specific. If you need to enforce a verbal contract in court, you will need to provide evidence of the agreement, so make sure to document it as much as possible. By following these tips, you can enter into a verbal contract with peace of mind.
