Verbal Contract Michigan: Everything You Need to Know
A verbal contract, also known as an oral contract, is a legally binding agreement made between two parties based on spoken words. In Michigan, verbal contracts are considered valid and enforceable, but they can be difficult to prove in court. In this article, we will explore everything you need to know about verbal contracts in Michigan.
What Constitutes a Verbal Contract in Michigan?
A verbal contract in Michigan is a legally binding agreement between two parties that is based on spoken words. The terms of the agreement can be outlined in a conversation, a phone call, or even an email – as long as there is a clear agreement between the two parties.
For a verbal contract to be valid in Michigan, the following elements must be present:
1. Offer: One party makes an offer to the other party.
2. Acceptance: The second party accepts the offer.
3. Consideration: Both parties provide something of value as part of the agreement.
4. Mutual intent: Both parties must intend to enter into the agreement.
5. Capacity: Both parties must have the legal capacity to enter into the contract.
Proving a Verbal Contract in Michigan
Proving a verbal contract in Michigan can be difficult, as there is no written record of the agreement. However, there are ways to prove the existence of a verbal contract:
1. Witness testimony: If there were witnesses present during the agreement, their testimony can be used to prove the existence of the contract.
2. Performance: If one or both parties have already performed their obligations under the contract, this can be used as evidence of the agreement.
3. Emails or text messages: If there were emails or text messages exchanged between the parties that referenced the agreement, this can be used as evidence.
Enforcing a Verbal Contract in Michigan
If you have a verbal contract that has been breached, you may be able to take legal action in Michigan. However, it is important to note that the burden of proof is on the party seeking to enforce the agreement.
To enforce a verbal contract in Michigan, you will need to file a lawsuit in small claims court or civil court. The court will evaluate the evidence presented and determine whether the contract is valid and enforceable.
It is important to note that there are certain contracts that must be in writing under Michigan law, such as contracts for the sale of real estate or contracts that cannot be completed within one year. These contracts must be in writing and signed by both parties to be enforceable.
In conclusion, verbal contracts are valid and enforceable in Michigan, but they can be difficult to prove in court. If you are considering entering into a verbal contract, it is important to carefully consider the terms of the agreement and keep detailed records of any conversations or emails related to the agreement. If you have a verbal contract that has been breached, it is important to consult with an attorney to determine your legal options for enforcing the agreement.