It is generally good advice to reduce agreements to writing.  For obvious reasons, a well-written, thorough agreement between contracting parties usually prevents or resolves many disputes arising out of the subsequent relationship between the parties.  

First and foremost, relying on the memories of the parties to determine the terms of the agreement is a recipe for disaster.  People forget where they put their car keys, let alone the specifics of a construction contract.

However, most people are surprised to learn that, in most instances, a verbal agreement is just as enforceable as a written agreement.  In fact, only a handful of types of agreements are required to be in writing to be enforceable.  This concept is known as the statute of frauds.  Michigan’s version of the statute of frauds requires only the following types of agreements to be in writing to be enforceable:

(a) An agreement that, by its terms, is not to be performed within 1 year from the making of the agreement.

(b) A special promise to answer for the debt, default, or misdoings of another person.

(c) An agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry.

(d) A special promise made by a personal representative to answer damages out of his or her own estate.

(e) An agreement, promise, or contract to pay a commission for or upon the sale of an interest in real estate.

(f) An assignment of things in action, whether intended as a transfer for sale, for security, or otherwise.

(g) An agreement, promise, contract, or warranty of cure relating to medical care or treatment. This subdivision does not affect the right to sue for malpractice or negligence.

(h) An agreement for land leases extending beyond one year, or the transfer of interests in land.

Conspicuously missing from this list are several types of familiar contracts – partnerships, joint ventures and employment to name a few.  With that being said, it is best to negotiate, draft and have all parties sign a thorough agreement before engaging in any type of business.  Better yet, have a lawyer do it.  g

— Kassem Dakhlallah is a partner with Jaafar & Mahdi Law Group, P.C.  His practice focuses on complex litigation, including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 846-6400 and kassem@jaafarandmahdi.com.

It is generally good advice to reduce agreements to writing.  For obvious reasons, a well-written, thorough agreement between contracting parties usually prevents or resolves many disputes arising out of the subsequent relationship between the parties.  First and foremost, relying on the memories of the parties to determine the terms of the agreement is a recipe for disaster.  People forget where they put their car keys, let alone the specifics of a construction contract.

However, most people are surprised to learn that, in most instances, a verbal agreement is just as enforceable as a written agreement.  In fact, only a handful of types of agreements are required to be in writing to be enforceable.  This concept is known as the statute of frauds.  Michigan’s version of the statute of frauds requires only the following types of agreements to be in writing to be enforceable:

(a) An agreement that, by its terms, is not to be performed within 1 year from the making of the agreement.

(b) A special promise to answer for the debt, default, or misdoings of another person.

(c) An agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry.

(d) A special promise made by a personal representative to answer damages out of his or her own estate.

(e) An agreement, promise, or contract to pay a commission for or upon the sale of an interest in real estate.

(f) An assignment of things in action, whether intended as a transfer for sale, for security, or otherwise.

(g) An agreement, promise, contract, or warranty of cure relating to medical care or treatment. This subdivision does not affect the right to sue for malpractice or negligence.

(h) An agreement for land leases extending beyond one year, or the transfer of interests in land.

Conspicuously missing from this list are several types of familiar contracts – partnerships, joint ventures and employment to name a few.  With that being said, it is best to negotiate, draft and have all parties sign a thorough agreement before engaging in any type of business.  Better yet, have a lawyer do it.  

— Kassem Dakhlallah is a partner with Jaafar & Mahdi Law Group, P.C.  His practice focuses on complex litigation, including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 846-6400 and kassem@jaafarandmahdi.com.