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Verbal Agreements in Michigan: Understanding your Legal Rights

Verbal agreements, also referred to as oral contracts, refer to agreements that are made verbally without any written documents or signatures. While these types of agreements are legally binding in the state of Michigan, they can be complicated to enforce, especially when disputes arise.

In this article, we will be discussing verbal agreements in Michigan and the legal rights of both parties involved.

What constitutes a verbal agreement in Michigan?

A verbal agreement in Michigan is considered a binding contract as long as it meets certain criteria. Generally, for a verbal agreement to be legally binding, there must be:

1. An offer: One party must offer something of value, such as a service or product, to the other party.

2. Acceptance: The other party must accept the offer and agree to the terms of the agreement.

3. Consideration: Both parties must exchange something of value, which is referred to as consideration. This could be money, goods, or services.

4. Mutual intent: Both parties must have a mutual understanding of the terms and conditions of the agreement.

What are the legal rights of the parties involved in a verbal agreement?

In Michigan, if a verbal agreement is legally binding, both parties have the same legal rights as they would under a written contract. However, enforcing a verbal agreement can be more challenging than enforcing a written contract, primarily due to the lack of documentation.

If disputes arise, it may be challenging to prove the terms of the agreement or the existence of the agreement itself. This is why it is always recommended to have written contracts, as they can be used as evidence in court if necessary.

How can you protect yourself in a verbal agreement?

To protect yourself in a verbal agreement in Michigan, there are several steps you can take:

1. Get it in writing: Whenever possible, get your agreements in writing. This will provide a clear record of the terms and conditions of the agreement, making it easier to enforce if disputes arise.

2. Keep records: If you do enter into a verbal agreement, be sure to keep detailed records of any exchanges, including emails or text messages, that confirm the terms and conditions of the agreement.

3. Seek legal advice: If you are unsure about the legality of a verbal agreement or have concerns about enforcing it, speak to a qualified legal professional for advice.

Conclusion

While verbal agreements are legally binding in Michigan, they can be challenging to enforce. It is always recommended to get agreements in writing whenever possible to avoid potential disputes down the line. However, if you do enter into a verbal agreement, be sure to keep detailed records and seek legal advice if necessary to protect your legal rights.