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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 |
| Jurisdiction: | Michigan |
| Cited Cases: | 15 F.3d 558; 264 N.W.2d 45; 80 Mich. App. 508; 802 F. Supp. 133 |
| Cited Statutes: | None |
| Date: | 02/01/2001 |
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).
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