Eerdmans v. Maki
573 N.W.2d 329 · Michigan Court of Appeals · 1998
Facts
Plaintiff sought to purchase an undeveloped tract of real property in Kent County, owned by Jeneane and Allen Parmenter, which was listed for sale by defendant Clint Maki, a real estate agent. Plaintiff saw an advertisement and contacted Maki, who disclosed he was the seller's agent and stated the seller wanted $465,000 cash. Maki allegedly assured plaintiff the seller could not back out if he agreed to pay the list price in cash. Plaintiff prepared two "Buy and Sell Agreements" offering $465,000 cash and $485,000 on a land contract, signing them as "Buyer" with Maki signing as "Witness." The property owners did not sign either agreement. Subsequently, the owners sold the property to a third party for $560,000. Plaintiff then filed suit alleging breach of contract against the Parmenters and fraud or misrepresentation against Maki and Westdale.
Procedural history
Plaintiff filed suit alleging breach of contract against the Parmenters and fraud or misrepresentation against Maki and Westdale. Defendants moved for summary disposition pursuant to MCR 2.116(C)(10). The trial court granted the motion for summary disposition with respect to both counts. Plaintiff appeals as of right from the trial court’s order.
Issue
Did a valid contract for the sale of real property exist between the plaintiff and the property owners? Did the real estate agent commit actionable fraud or misrepresentation regarding his authority to bind the sellers?
Holding
The court held that no valid contract was formed for the sale of the property, affirming summary disposition for the property owner on the breach of contract claim. The court also held that plaintiff failed to demonstrate injury from the alleged misrepresentation, affirming summary disposition for the real estate agent and his broker on the fraud claim.
Rule
A valid contract requires mutual assent on all essential terms, including an offer and an unambiguous acceptance. An offer is a manifestation of willingness to enter a bargain, justifying understanding that assent will conclude it. A contract for the sale of land must satisfy the statute of frauds, requiring a writing signed by the seller or a lawfully authorized agent in writing. To establish fraud or misrepresentation, a plaintiff must prove a material, false representation of a past or existing fact, known to be false (or reckless), made with intent for plaintiff to act, plaintiff's reliance, and resulting injury.
Read the full opinion on CourtListener
Case brief last reviewed . Prepared by CaseReader from the published opinion.