A Michigan real estate salesperson drafts a purchase agreement on behalf of a buyer client. The salesperson inadvertently omits the legal description of the property and instead writes only the street address. The seller signs the agreement. Later, a dispute arises and the seller claims the contract is unenforceable for lack of an adequate property description. Under Michigan law, which of the following is most accurate?
Correct Answer
B) The contract may be unenforceable because Michigan's Statute of Frauds requires a sufficient description of the property to be conveyed
Michigan's Statute of Frauds (MCL 566.108) requires that a contract for the sale of real property contain a sufficient description of the property to be conveyed. While a street address may sometimes be sufficient to identify a property, Michigan courts have held that an adequate legal description is the preferred and more reliable standard. A contract with only a street address and no legal description risks being challenged as insufficiently definite, potentially making it unenforceable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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