A Michigan purchase agreement for a residential property states that the closing will occur 'on or before August 15.' The buyer requests a two-week extension due to a delay in the appraisal. The seller agrees verbally but does not sign a written addendum. The buyer then misses the August 15 deadline. The seller declares the buyer in default and attempts to keep the earnest money. Under Michigan law, which of the following is most accurate?
Correct Answer
D) The written contract controls, but the seller may be estopped from enforcing the deadline if the buyer relied on the verbal extension
Under Michigan's Statute of Frauds (MCL 566.108), modifications to real estate contracts must generally be in writing to be enforceable. However, the doctrine of promissory estoppel may prevent the seller from strictly enforcing the written deadline if the buyer detrimentally relied on the seller's verbal promise of an extension. Whether estoppel applies is a fact-specific determination, but it is the most legally accurate answer given the scenario.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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