Issue: Under the laws of Michigan, what must a party show to establish the existence of a contract?
|Area of Law:||Business Organizations & Contracts|
|Keywords:||Existence of a contract; Consideration; Offer and acceptance|
|Cited Cases:||15 F.3d 558; 264 N.W.2d 45; 80 Mich. App. 508; 802 F. Supp. 133|
Normally, reliance is not necessary to maintain a contract action but may be relevant to proving elements of consideration and offer and acceptance. Angelo Iafrate Co. v. Detroit & N. Sav. & Loan Ass’n, 80 Mich. App. 508, 264 N.W.2d 45 (1978).
"It is well-settled under Michigan law that one who signs a contract is presumed to have read, understood and agreed to be bound by its terms and cannot seek to avoid such terms absent a showing of fraud or mutual mistake." Citizens Ins. Co. of Am. v. Proctor & Schwartz, Inc., 802 F. Supp. 133, 144 (W.D. Mich. 1992), aff’d, 15 F.3d 558 (6th Cir. 1994).