When two individuals or companies in Michigan enter into a contract, each party is legally obligated to fulfill the promises that were laid out in the agreement. A party who does not perform could be found to have breached the contract. This can occur when a party does not fulfill its end of the deal at all or fails to perform on time or in accordance with the terms of the contract.
After a sales contract is signed and money or other consideration changes hands, that contract becomes a binding legal document. Failure to live up to the terms of the contract could constitute a breach. A material breach of a contract occurs when the main promise of the contract is not delivered. When a material breach occurs, it may be possible for the buyer to take the seller to court to seek relief.
Like all states, Michigan has strict rules regarding when a lawsuit for a breach of contract claim must be filed. If this time frame passes without a formal complaint being filed, the petitioning party may forever be barred from bringing the claim.
Business law exists in Michigan and across the nation to protect a company's interests and their rights. Companies often enter business agreements with other parties for their mutual benefit. While these generally go smoothly, problems can occur.
Detroit-based Walbridge Construction is seeking $118.5 million in compensation for work on a halted construction project in Indiana. The company was contracted by Getrag Transmission, a German manufacturing company, to build an 800,000-square-foot factory, but when Getrag and its former partner Chrysler went bankrupt, the project went south.
Former executives at the Internet marketing company ePrize LLC, based in Pleasant Ridge, say they weren't paid due compensation when a majority stake in the company was sold to a private equity group, Catterton Partners Corp., in 2012. The value of the sale was estimated at $100 million, and an appeal is expected after a judge in Oakland County recently dismissed a lawsuit brought by the former executives.