Legal Question in Technology Law in Michigan

Computer Software Contract

We approached a private party to design a inter-office management software, we never signed an agreement of any type. We gave a non-refundable $1500 deposit. We initialy verbly agreed to the development on the original terms. The original cost promised was changed several times, the original date of delivery was in Janurary of 2002. We recieved the final contract in mid April and we do not agree to the terms and conditions. We are not happy with the price, time line, conditions and product. They want to take us to court. What are our rights? Can they sue?


Asked on 4/23/02, 10:02 am

3 Answers from Attorneys

Regina Mullen Legal Data Services, PLC

Re: Computer Software Contract

You also need to look at what YOUR rights are.

Surely you must have SOME documentation of this project, something to show what the original terms and understandings were.

You may not know this, but legal obligations CAN arise from correspondence and other evidence of the understandings of two parties. Make copies of all the letters, meeting notes, etc. and take those to a local attorney. These will be useful to determine whether THEY breached a valid agreement, and by which modifications, if any, they must now be bound.

You definitely need more in-depth legal analysis, because it's not just a matter of whether they have a case, but whether you do as well. I would be willing to help you negotiate this, or take it to court as necessary.

Good Luck

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Answered on 4/25/02, 2:11 pm
Lawrence Graves Coolidge & Graves PLLC

Re: Computer Software Contract

Of course they CAN sue; the issue is what, if anything, they are likely to recover.

You will want to consult a lawyer in your own jurisdiction for a specific interpretation of the outcome under Michigan law; however, the analysis is likely to look like this:

The so-called Statute of Frauds requires that contracts over a certain value be in writing signed by the "party to be charged." However, in most jurisdictions, part performance based upon an oral contract renders the contract enforceable, provided that the essential terms can be proven. In your case, if the essential terms of price, product specification, and delivery date were not agreed before the commencement of the services, then it is hard to claim based upon contract.

Where no contract can be proven, a party may still claim in "quasi-contract" for the value of the benefit conferred. However, in the context that you describe, where there have been no deliverables or other benefit conferred upon you by the software company, it is hard to see a viable claim for damages.

Again, since these contract law doctrines vary from state to state, please consult a local lawyer before relying upon the above as an accurate assessment of your potential liabilities under Michigan law!

Best wishes,

LDWG

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Answered on 4/23/02, 11:42 am
Irving M. Weiner Weiner & Burt, P.C.

Re: Computer Software Contract

They can sue. Anybody can sue anybody else for any and every thing. But can they win? The reply given to you by Lawrence Graves is excellent, and applies in Michigan. If you wish to discuss or require assistance, please contact me: Irving M. Weiner, Weiner & Burt, P.C., 635 N US-23, POB 186, Harrisville, Mi 48740; Tel. 800-UPATENT; Fax 989-724-7100; Email [email protected].

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Answered on 4/23/02, 5:48 pm


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