Is Oral Legal?
Verbal agreements, also called oral contracts, can be legal and enforceable in Michigan, but with some limitations.
Here’s a breakdown:
Generally Enforceable: Michigan law recognizes verbal contracts as valid if they meet the standard elements of a contract: offer, acceptance, and consideration (exchange of something of value).
Statute of Frauds: However, there’s a law called the Statute of Frauds that requires certain contracts to be in writing and signed to be enforceable.
These include:
- Agreements that won’t be performed within one year of making the agreement.
- Promises to answer for the debt of another person.
- Selling real estate.
- Selling goods for over $1,000.
Difficulties in Court: Even if your verbal agreement isn’t subject to the Statute of Frauds, it can be difficult to enforce in court. This is because there’s no written record of the agreement, so it becomes a “he-said, she-said” situation.
To Sum it Up: Verbal agreements can be legal in Michigan, but it’s always better to have a written contract, especially for important agreements. A written contract provides clear evidence of the terms and reduces the risk of misunderstandings or someone backing out of the agreement.
If you’re unsure whether your verbal agreement needs to be in writing or you need help enforcing a verbal agreement, it’s best to consult with an attorney.
What’s the law?
There isn’t a specific MCL dedicated solely to verbal agreements in Michigan. However, the relevant statute that applies to the enforceability of certain contracts based on form is the Statute of Frauds. This is found in the Uniform Commercial Code (UCC) under Article 2 on Sales:
- MCL 566.132 (https://www.legislature.mi.gov/)
This MCL outlines the types of contracts that must be in writing and signed to be enforceable in court. These include:
- Agreements that can’t be performed within one year (MCL 566.132(1)(a))
- Promises to guarantee another’s debt (MCL 566.132(1)(b))
Michigan’s UCC also has a separate provision under Article 2 for the sale of goods:
- MCL 440.2201 (http://legislature.mi.gov/documents/mcl/pdf/mcl-chap440.pdf)
This MCL requires any contract for the sale of goods for more than $1,000 to be in writing to be enforceable.
So, while there’s no single MCL for verbal agreements, these two provisions (MCL 566.132 and MCL 440.2201) are the key ones to consider when determining if a verbal agreement needs to be written down in Michigan.
Real Questions from Real Calls
Question: I made a verbal agreement and shook hands with my friend for a $20 bet that he couldn’t eat a spoonful of cinnamon. He did. Am I legally obligated to pay him?
Answer: Some questions don’t need legal advice. Pay him the $20 and don’t bet anymore.
Related Articles
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
More Posts
Michigan communities still opted out of adult-use marijuana sales in 2023
Adult-use recreational marijuana has been legal in Michigan since voters approved a ballot proposal in the 2018 election, and sales commenced in 2019. However, numerous...
What Are Your First Amendment Rights For Now
The Constitution of the United States is the supreme law of the United States of America for now. It superseded the Articles of Confederation, the nation's first...
Court rules that cannabis grows of any size is just a misdemeanor in Michigan
According to MLive - The likelihood of black-market marijuana growers in Michigan facing full-blown, paramilitary-style raids featuring battering rams and heavily armed...
Department of Attorney General Prepares for MLEAC Accreditation
LANSING – The Michigan Department of Attorney General (DAG) recently welcomed a team of assessors from the Michigan Law Enforcement Accreditation Commission (MLEAC)....
Oklahoma’s wild marijuana market is about to shrivel
The world's weed market, once booming with nearly 14,000 licensed medical marijuana businesses at its peak, has experienced a steady decline since Oklahoma voters...
400K settlement after being arrested for a DUI, even though he passed breath and blood tests
A Colorado man is poised to receive a $400,000 settlement from city authorities after being wrongfully arrested for a DUI, even though he had passed both a breath and...
Evaluation of Field Sobriety Tests for Identifying Drivers Under the Influence of Cannabis
This randomized clinical trial investigates the accuracy of field sobriety tests administered by law enforcement officers to assess functional impairment and driving...
When Being Questioned by the Police: Can They Lie to You?
When Being Questioned by the Police: Can They Lie to You? Introduction In the United States, police officers are generally allowed to lie to suspects during...
Michigan Executive Directives Update December 1 2023
What is an Executive Directive? Similar to executive orders, executive directives are issued by the Governor to establish basic internal policy or procedure for the...
Michigan Executive Orders Update December 1 2023
What is an Executive Order? The Michigan Constitution of 1963 vests the executive power of the state in the Governor. That power can be exercised formally by executive...