CONTRACT Law
Overview
Videos
Case Studies
Contracts
We prevent and resolve problems related to Michigan and Ohio contract issues. Creating a good and viable contract between parties is of paramount importance. There is an old adage in business: “pay now or pay later.” This is never more true than when it comes to generating a contract. A written contract is most often the foundation for all business relationships.
The elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation; (5) competency and capacity; and, in most circumstances, (6) a written instrument.
Contract law and legal theory have developed over the centuries and thousands upon thousands of cases center around the six elements listed above. The contract attorney’s job is to create contractual provisions that protect their client’s interests not only for when business relationships are good between parties, but more importantly, if and when these relationships deteriorate.
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How to Protect Your Legal & Financial Interests When Doing Business With Family or Friends
Videos
A Word About Contracts
Podcast
Our Latest Podcasts
Soble Podcast Episode: I am Magnavox
Soble Podcast Episode: It Takes a Comma
Soble Podcast Episode: Hired the Wrong Person
Soble Podcast Episode: Information is Not Experience
Soble Podcast Episode: Flight of the Concordski
Soble Podcast Episode: And That's the Way It Is, Mr. Cooper
Soble Podcast Episode: Why Hesitate?
Soble Podcast Episode: Fortunes and Misfortunes of a Village
Soble Podcast Episode: Not Always As They Seem
Soble Podcast Episode: Chariots and Rocket Boosters
Soble Podcast Episode: Cleveland '86
Soble Podcast Episode: The $100K Beard
Soble Podcast Episode: The Potter's Apprentice
Soble Podcast Episode: Replacing the Brakes
Soble Podcast Episode: The Worst Kind of Art
Soble Podcast Episode: There's All Types of Help
Soble Podcast Episode: The Chaos of My Sock Drawer
Soble Podcast Episode: The 6 1/2 Foot Scowl
Soble Podcast Episode: Turning Point in History
Soble Podcast Episode: Decisions Based on Fear
Soble Podcast Episode: Fasta Pasta
Soble Podcast Episode: Just Don't Go There
Soble Podcast Episode: Don't Celebrate Too Soon
Soble Podcast Episode: Meanwhile in the Town of Popperville
Soble Podcast Episode: America's Most Trusted Professionals
Soble Podcast Episode: Ancient Walls
Soble Podcast Episode: The 24-Hour Rule
Soble Podcast Episode: Takin' it Easy and Other Mistakes
Soble Podcast Episode: Sarah, Pumpkin Queen
Soble Podcast Episode: Don't Stop Pedaling
Soble Podcast Episode: Kmart Fish and the Blue Acara
Soble Podcast Episode: Carthage and Rome
Soble Podcast Episode: An Empty Vessel
Soble Podcast Episode: Expectations vs Reality
Soble Podcast Episode: Most Dangerous Day in Modern History
Soble Podcast Episode: It's in the Small Details
Weekly Q & As with David Soble
FAQs
Frequently Asked Questions
Top Contract Questions
Contract law has evolved over the centuries. It is often complicated, filled with subtule legal nuances that can, and will impact the legal outcome of one’s case. Make sure that you have the right representation when negotiating a contract or tackling a contract dispute. Call us today to learn more about your rights!
In Michigan, what happens when parties to a contract allege that the other party breached the contract terms?
To establish a breach of contract, one must prove “(1) there was a contract, (2) the other party breached the contract, and (3) the breach resulted in damages to the party claiming breach.” Bank of America, NA v First American Title Ins Co, 499 Mich 74, 100; 878 NW2d 816 (2016). The salient element is the second, when both parties alleging that the other breached the contract. “The rule in Michigan is that one who first breaches a contract cannot maintain an action against the other contracting party for his subsequent breach of failure to perform.” Michaels v Amway Corp, 206 Mich App 644, 650; 522 NW2d 703 (1994). “However, that rule only applies when the initial breach is substantial.” Id (emphasis added). “In determining whether a breach is material, the court should consider whether the non-breaching party obtained the benefit it reasonably expected to receive.” Omnicom of Mich v Giannetti Inv Co, 221 Mich App 341, 348; 561 NW2d 138 (1997).
Do all contracts have to be in writing to be enforeable?
No, a contract can be legally enforceable whether it is made in writing or it is an oral agreement. There are some exceptions however. Under the Statute of Frauds, certain agreements are not enforceable if they are not in writing. For example, agreements related to real estate that have a term exceeding one year must be in writing to be valid. Check with our attorneys to learn more about these exceptions.
What if I signed an agreement on behalf of a small company that I own. Am I also personally responsible for the company if it defaults?
Whether or not you will be held personally responsible under a contract will depend on the provisions in the contract. If you signed as a ‘personal guarantor’ for the company, you will be held accountable for the company’s obligations, but to what extent will depend upon how you negotiated your guaranty.
I never signed an agreement, but now I am being sued. Can I be held liable?
Even if you feel that you did not enter into an agreement, a court may find that you are bound by a contract pursuant to the legal doctrine of “promissory estoppel.” The court will determine if (1) a legal relationship either exists or is anticipated between the parties; (2) representations are given in circumstances that lead the other party to assume the promise will be performed; (3) reliance by the other party on the promise or representation to their own detriment; and (4) it would be unconscionable for the promisor to go back on their promise.
Can I collect punitive damages for a seller's breach of a business agreement?
Unless the conduct of the other party was so outrageous, reckless, or malicious, it is highly unlikely that a court would award punitive or exemplary damages in a contract case. Compensatory damages are awarded instead. Courts most often award compensatory damages covering the actual loss the nonbreaching party incurred as a result of the breach of contract. Compensatory damages replace the loss caused by the breach.
What does an anticipatory breach mean?
An anticipatory breach occurs when a party demonstrates its intention to break a contract. However, vocal or written confirmation is not required, and failure to perform any obligation in a timely matter can result in a breach. An anticipatory breach ends the counterparty’s responsibility to perform its duties, however, the aggreived party claiming an anticipatory breach is legally obligated o make every effort to mitigate their own damages if they wish to seek damages in court.
Articles About Contracts
Read our most recent articles on this topic
Guarantor vs. Co-signer
Do banks require that a co-signer be part owner of the secured property as well? Speaker 1: (00:03) All right. Okay. Moving on to our next question. It must be from anonymous because we don\'t have a writer. So we\'ll just say anonymous asks. Do banks require that a co-signer…
Late Payment on Land Contract
Do I automatically lose my rights to a home that I purchased on a land contract if I have not made payments over 90 days? Speaker 1: (00:08) Okay. So this question comes from Thomas in Adrian, Michigan. And Thomas says that years ago, in 2004, I bought a business…
Contract Violations
What happens if a builder uses my deposit and loan money without doing the work as agreed?Speaker 1: (00:03) This question comes to us from one of your fans, David, who says, I have seen many of your videos. So they must be quite excited to ask their own question…
Earnest Money Deposits: Everything You Need to Know
Why Require An Earnest Money Deposit An Earnest Money Deposit, also known as a good faith deposit, comes from the prospective home buyer and it shows the buyer\'s commitment to the seller that they are serious about purchasing a seller\'s home. Once the buyer provides the seller with a signed…
Property Flips in Detroit: Our Most Helpful Tips and Tricks
PROPERTY FLIPS IN MICHIGAN While house flipping is a great way to make a quick profit, this endeavor requires realistic expectations and well-laid-out plans for every step of the process in advance. All too often, wide-eyed first-time buyers entering the fix-and-flip market are excited by television shows that make the…
How to Protect Your Home Project With a Construction Agreement
CONSTRUCTION AGREEMENT If you’ve ever embarked on a home remodeling or construction project, you quickly realize that the endeavor is not for the weary. There are so many details to manage. Then there are the unforeseen circumstances that will come up, and trust us, they will). The last thing you…
How to Deal With a Boundary Dispute on Your Property
Dealing With a Boundary Dispute Boundary disputes involve issues that occur between two or more property owners occupying neighboring properties. In some cases, boundary disputes can arise when an owner builds a fence, a building or a wall. Understanding the Extent of the Boundary Issue Before accusing a neighbor of…
When Does a Letter of Intent Constitute a Contract?
A real estate buyer and seller write up their own Letter of Intent (“LOI”) to engage in a real estate land lease transaction. They spend some time on the document outlining some of the chief terms of the prospective deal that they will put in a contract in the near…
How Equitable Mortgage Laws Can Unwind Your Transaction
Since about 2014, real estate investing and \"flipping\" has been a hot and profitable industry. While there are great deals out there, Michigan law will not tolerate abusive investment tactics at the expense of Michigan homeowners. Below is Michigan case law, which should be instructive to real estate investors and…
Could a Mortgage Modification Help Your Financial Situation?
MORTGAGE MODIFICATION Are you behind on mortgage payments? Is your lender threatening foreclosure actions against you? Waiting on your lender to reach out to you with help is not going to improve your financial situation. Instead of facing a mortgage foreclosure, there may be other legal and financial options available for you,…
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I am very happy I contacted David. I felt at ease as soon as I contacted him about my situation. The seller did not want to return my deposit after after a failed inspection and many other things. David got right on it and I got my full deposit back. 🙂 David was very responsive (he always replied to my emails within a few hours or even minutes). I would recommend him to anyone. Thanks again David.
Steve G, Lathrup Village, MI
I came to David Soble with an honest question; "Do I have a case?" Not only did he speak with me personally, he took time to quickly review the details of my situation. No other attorney would talk with us without a retainer. Even though he determined we did not have a case, he took the time to show us he cared! Thank you David.
Jane Blackmon
David and his team are absolutely top notch and provide A1 service. I would recommend them to anyone in need. Thank you!
Robert Syfert, Tampa, FL
Mr. Soble is a true professional, who is very dedicated to his clients. I've been working with him for a couple of years now, and it has been a pleasure. He is very attentive to his clients' needs, and his knowledge of his field of expertise is impressive. In today's day and age it's frustrating to have to wait days for a response. That's never the case with Mr. Soble. I've always gotten a reply very quickly.
S. Volgyi (Emes Home Inspections)
Oak Park, MI
David Soble Law office was fantastic assisting me filing an action to quiet title. The staff was professional, and Mr. Soble made a difficult situation into a smooth process. I’m so very happy I was referred to Soble Law Office, I look forward to referring others.
Melinda Jones, Southfield, MI
The Soble Law team made my tenant eviction a easy process. Very informative, and gave the best direction on how to deal with my issue. I look forward to working with Soble Law with all my real estate issues.
CPR Rentals and Investments LLC
Detroit, MI
Soble Law firm and his associate Aaron are very knowledgeable of real estate law. They worked on our behalf and we won our land-contract case. We're very happy we hired this firm and were able to get a successful outcome.
Carla Lewis-Moore, Westland, MI
David helped me with a challenging legal matter. The results were favorable and the service was great. He’s always honest and direct. If you have a complex real estate or contractual matter, consider David.
Pete Negohosian, Troy, MI
I needed an attorney and found Soble Law (proven resource) online. I took that leap of faith and called. It was a good decision! David responded quickly, was very professional, easy to talk to, and handled my mortgage issue . David told me what to expect and even did a follow up to see if I had any more questions. There is no doubt that I would use David Soble law again, and would refer others as well.
Deborah Watkins
I was freakin' out and you stayed calm and bold and I am impressed. I really didn't think they would go for the $$$$. I feel so damn good right now! Thank you for doing what you do!"
H.A., Brighton, MI
"l was a client of Mr. Soble and he was very pleasant to work with and he took my case right away. He took time to answer all the questions and concerns that l had. When l called him, he got back to me that same day. We settled on an offer, and then received our check in a timely matter. l recommend the Soble Law firm for all your real estate needs because they take care of business."
Lisa S., Southgate, MI
David, I anguished for months over my problem. Had I not called you, I don't think I would have gotten it resolved. In less than 2 weeks you negotiated a fair settlement for my business. I'm so happy and my employees are happy. Thank you!
Rhoda St. Luce, Southfield, MI
The balance for one of my credit cards was over $14,000. In less than one week David and his staff were able to negotiate a new balance for less than $4000. We saved over $10,000. This was for just on one of our cards. I have to admit that my husband and I were skeptical at first, but they delivered. I now understand why the meaning behind the name. David and his staff are truly a Proven Resource!
J. James
"Attorney David Soble lives up to his firm's namesake, "Proven Resource." I appreciate knowing that when my clients need a diligent and responsive real estate or contracts attorney, I can easily make the referral to David, David is well worth having on your side."
Dino Lembesis, S. Lyon, MI
-Financial Adviser, Brighton, MI
I am very happy I contacted David. I felt at ease as soon as I contacted him about my situation. The seller did not want to return my deposit after after a failed inspection and many other things. David got right on it and I got my full deposit back. 🙂 David was very responsive (he always replied to my emails within a few hours or even minutes). I would recommend him to anyone. Thanks again David.
Steve G, Lathrup Village, MI
I came to David Soble with an honest question; "Do I have a case?" Not only did he speak with me personally, he took time to quickly review the details of my situation. No other attorney would talk with us without a retainer. Even though he determined we did not have a case, he took the time to show us he cared! Thank you David.
Jane Blackmon
David and his team are absolutely top notch and provide A1 service. I would recommend them to anyone in need. Thank you!
Robert Syfert, Tampa, FL
Mr. Soble is a true professional, who is very dedicated to his clients. I've been working with him for a couple of years now, and it has been a pleasure. He is very attentive to his clients' needs, and his knowledge of his field of expertise is impressive. In today's day and age it's frustrating to have to wait days for a response. That's never the case with Mr. Soble. I've always gotten a reply very quickly.
S. Volgyi (Emes Home Inspections)
Oak Park, MI
David Soble Law office was fantastic assisting me filing an action to quiet title. The staff was professional, and Mr. Soble made a difficult situation into a smooth process. I’m so very happy I was referred to Soble Law Office, I look forward to referring others.
Melinda Jones, Southfield, MI
The Soble Law team made my tenant eviction a easy process. Very informative, and gave the best direction on how to deal with my issue. I look forward to working with Soble Law with all my real estate issues.
CPR Rentals and Investments LLC
Detroit, MI
Soble Law firm and his associate Aaron are very knowledgeable of real estate law. They worked on our behalf and we won our land-contract case. We're very happy we hired this firm and were able to get a successful outcome.
Carla Lewis-Moore, Westland, MI
David helped me with a challenging legal matter. The results were favorable and the service was great. He’s always honest and direct. If you have a complex real estate or contractual matter, consider David.
Pete Negohosian, Troy, MI
I needed an attorney and found Soble Law (proven resource) online. I took that leap of faith and called. It was a good decision! David responded quickly, was very professional, easy to talk to, and handled my mortgage issue . David told me what to expect and even did a follow up to see if I had any more questions. There is no doubt that I would use David Soble law again, and would refer others as well.
Deborah Watkins
I was freakin' out and you stayed calm and bold and I am impressed. I really didn't think they would go for the $$$$. I feel so damn good right now! Thank you for doing what you do!"
H.A., Brighton, MI
"l was a client of Mr. Soble and he was very pleasant to work with and he took my case right away. He took time to answer all the questions and concerns that l had. When l called him, he got back to me that same day. We settled on an offer, and then received our check in a timely matter. l recommend the Soble Law firm for all your real estate needs because they take care of business."
Lisa S., Southgate, MI
David, I anguished for months over my problem. Had I not called you, I don't think I would have gotten it resolved. In less than 2 weeks you negotiated a fair settlement for my business. I'm so happy and my employees are happy. Thank you!
Rhoda St. Luce, Southfield, MI
The balance for one of my credit cards was over $14,000. In less than one week David and his staff were able to negotiate a new balance for less than $4000. We saved over $10,000. This was for just on one of our cards. I have to admit that my husband and I were skeptical at first, but they delivered. I now understand why the meaning behind the name. David and his staff are truly a Proven Resource!
J. James
"Attorney David Soble lives up to his firm's namesake, "Proven Resource." I appreciate knowing that when my clients need a diligent and responsive real estate or contracts attorney, I can easily make the referral to David, David is well worth having on your side."
Dino Lembesis, S. Lyon, MI
-Financial Adviser, Brighton, MI
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