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
Traffic FAQs – Traffic Crashes & Reports
Traffic FAQs - Traffic Crashes & Reports Know the laws if you get pulled over. Know who to call if you need legal defense if a violation turns into a DUI or worse. That would be us. Traffic Crashes & Reports Beginning in July 2005, the State of Michigan...
Berkley state representative introduces bill to police noise from cars
A Michigan bill aims to crack down on excessive noise from vehicles with intentional modifications. The Problem: Loud vehicles are a nuisance for residents, especially along Woodward Avenue, a popular cruising destination. The current law is unclear and difficult to...
Traffic FAQs-Golf Carts-Mini Motorcycles-ATVs-Electric Scooters
Traffic FAQs - Golf Carts - Mini Motorcycles - ATVs - Electric Scooters Know the laws if you get pulled over. Know who to call if you need legal defense if a violation turns into a DUI or worse. That would be us. Question: We recently got “Bird” scooters (electric...
A Victory for Cannabis Farming as Agriculture in Michigan
A Victory for Cannabis Farming as Agriculture in MichiganIn a landmark case that underscores the evolving landscape of cannabis regulation and taxation in agricultural contexts, HRP Cassopolis, LLC v LaGrange Township Assessor in Cass County, Michigan, has set a...
More Posts
Vehicle Forfeiture in Canada – The Process of Taking
Thank You... and have a nice day eh!Disclaimer: We are not Attorneys in Canada. This is an article of information obtained from various sources and presented here. We...
Boating in Michigan on Alcohol and Drugs – It’s Illegal
If it's got a motor, it's a BUIWe got lakes, we got boats, we got alcohol, we got cannabis all the fun you can possibly find on a holiday weekend in the summer. Just...
Alcohol, Drugs, Kayaking – It could be a problem
Can I drink alcohol and smoke cannabis if I'm canoeing or kayaking or tubing or paddleboarding or just floating around?While Michigan law doesn't explicitly forbid...
Michigan Workers Right to Protest – Can They Force a Change in Business Strategy?
Michigan Workers and the Right to Protest: Can They Force a Change in Business Strategy?The ever-evolving economic landscape can create friction between Michigan...
Carjacking is a Federal Offense
Carjacking is a Federal OffenseCarjacking, the act of forcibly stealing an occupied vehicle, has long been a concern for public safety. It was a local and state issue...
THC Associated with Increase of Survival Time in Palliative Cancer
Summary from the official government website (Link Below)The Use of Tetrahydrocannabinol Is Associated with an Increase in Survival Time in Palliative Cancer Patients:...
Can I be arrested for DUI riding my bike high in Michigan?
Recreational Cannabis is "legal" in Michigan.Can I be arrested for riding my bike high in Michigan?First... What is the definition of a bicycle? MCL 257.4 defines a...
Traffic FAQs – Traffic Crashes & Reports
Traffic FAQs - Traffic Crashes & Reports Know the laws if you get pulled over. Know who to call if you need legal defense if a violation turns into a DUI or worse....
Justice Department Submits Proposal to Reschedule Marijuana
Proposed Rule Seeks to Move Marijuana from Schedule I to Schedule III, Emphasizing its Currently Accepted Medical Use in Treatment in the United StatesThe Justice...
Bloomfield Hills Doctor Convicted of $6M Medicare Fraud Scheme
JUSTICE.GOVFor Immediate Release Office of Public AffairsA federal jury convicted a Michigan doctor today for causing the submission of over $6.3 million in fraudulent...