Legal Question in Real Estate Law in Michigan
Legality of a contract
Is a verbal contract legal and is a handwritten one legal? I had a verbal contract with someone and then in the middle of everything he wants me to sign this handwritten one. I need to find out because he has violated points of the verbal one. I am purchasing some land and the person I am dealing with moved my double wide to the property. I have incurred expenses not agreed upon and he has not fulfilled his verbal promises. He hired another party to do most of the actual work. He himself has no contractors license in this state. He has tried to save money by cutting corners on the structural integrity of my garage and has changed other things that we had agreed upon. He told me I would only be out of my home for 3days to a week and I ended up in a hotel for over 2 weeks. Now he wants me to pay him a penalty of $500 a month because he hasn't gotten his money yet. The mortgage company won't pay the money until the job is finished. He has harrassed me for th money non stop since the project began and he was the one who offered to front all of the money to do the job until we close on the loan. Please help. thank you
2 Answers from Attorneys
Re: Legality of a contract
It sounds like this guy wants to *modify* the existing oral agreement. Some oral agreements are enforceable and some are not. If you have an oral contract, it will be very difficult and expensive for either side to prove what the agreement was. It will be your word against his.
A handwritten contract would probably be enforceable, but unless it reflects the terms of the original deal, you should not sign it before consulting an attorney. If you do, you may waive whatever rights you had under the oral contract.
It is difficult to offer you any specific advice because the transaction you have described seems complicated, and there are, no doubt, relevant facts that I cannot know. If you would like to call me to discuss this matter further, you may call me at 248.594.2718 ext. 103. Gary Weingarden
Re: Legality of a contract
Your contractor must be licensed in Michigan to bring suit against you. You, however, may sue him for damages incurred because he failed to complete the job - i.e. if you can prove that he violated the terms of your oral contract.
Oral contracts are not illegal, but they are often unenforceable because they cannot be proved.
Any agreement for the purchase of real property or for a rental exceeding one year must be in writing in order to be valid.
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