What Is a Breach of Contract in Michigan and What Are Your Options?
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. Laws and their application vary by jurisdiction and by the specific facts of each case. Please consult a licensed attorney for guidance specific to your situation.
When Someone Fails to Honor an Agreement
Contract disputes happen every day across Michigan. A vendor who fails to deliver on time. A contractor who walks off a job. A business partner who stops contributing their share. A client who refuses to pay for services rendered. When the other party to an agreement does not hold up their end, you have rights, but exercising them effectively requires understanding how Michigan contract law works.
This article explains the basics of breach of contract claims in Michigan and what options are available to businesses and individuals in Oakland and Wayne Counties. For a broader overview of how business disputes are handled in Oakland County, see our article on business litigation in Michigan.
What Is a Breach of Contract?
A breach of contract occurs when one party to a legally binding agreement fails to perform their obligations under that agreement without a lawful excuse. A breach is not necessarily about intent, it is about performance. A contract is either performed or it is not.
Michigan courts recognize three main types of breach:
Material Breach
A material breach is a significant failure to perform that goes to the heart of the contract. When a material breach occurs, the non-breaching party is generally excused from their own obligations under the contract and may seek damages. For example, a contractor who completes only a fraction of an agreed project before abandoning it has likely committed a material breach.
Anticipatory Breach
An anticipatory breach occurs when one party clearly communicates, before performance is due, that they will not fulfill their obligations. This can happen through a direct statement or through conduct that makes it clear performance will not occur. In these situations, the non-breaching party does not have to wait for the actual breach to occur before taking legal action.
Minor Breach
A minor breach, sometimes called a partial breach, occurs when a party substantially performs but falls short in some respect. In these cases, the non-breaching party may still be entitled to damages for the shortfall, but they are generally not excused from their own obligations under the contract.
What You Need to Prove in a Michigan Breach of Contract Case
To succeed on a breach of contract claim in Michigan, a party must generally prove four elements:
A contract existed between the parties, supported by an offer, acceptance, and consideration (something of value exchanged by both sides)
The contract's terms required the defendant to do, or refrain from doing, something specific
The defendant failed to perform as required
The plaintiff suffered damages as a result of that failure
The burden of proof rests on the party claiming breach. Courts need specific evidence on each element. The absence of even one can be fatal to an otherwise strong claim.
It is also worth noting that contracts do not always have to be in writing to be enforceable in Michigan. Verbal contracts can be legally binding, though proving their existence and terms is significantly more difficult. Michigan's Statute of Frauds does require certain types of contracts to be in writing, including real estate agreements and contracts that cannot be performed within one year.
What Remedies Are Available in Michigan
When a breach of contract is established, Michigan law provides several potential remedies depending on the nature and severity of the breach:
Compensatory Damages
The most common remedy is monetary compensation for losses directly resulting from the breach. The goal is to put the non-breaching party in the position they would have been in had the contract been performed. This can include lost profits, costs of cover (the expense of obtaining substitute performance elsewhere), and other direct losses.
Consequential Damages
Consequential damages cover foreseeable losses that result from the breach but go beyond the direct value of the contract itself. For example, if a supplier fails to deliver materials and a business loses a major client as a result, that lost business may be recoverable as consequential damages, provided the supplier could have reasonably foreseen that risk at the time of contracting.
Specific Performance
In some cases, monetary damages are not an adequate remedy. A court may order specific performance, requiring the breaching party to fulfill their contractual obligations. This remedy is most commonly sought in real estate disputes, where each piece of property is considered unique and money damages may not adequately compensate the non-breaching buyer or seller.
Rescission
Rescission cancels the contract and attempts to restore both parties to the position they were in before the agreement was made. This remedy is typically available when the breach is material or when the contract was entered into based on fraud or misrepresentation.
Before Going to Court: Alternative Options
Not all contract disputes need to end in litigation. In many cases, disputes can be resolved more quickly and at lower cost through negotiation, mediation, or a formal demand letter. A well-crafted cease and desist or demand letter from an attorney can sometimes resolve a dispute without the need for court proceedings at all.
If the dispute does escalate, our general litigation practice handles civil contract disputes for businesses and individuals throughout Oakland and Wayne Counties, in court or through alternative resolution.
Statutes of Limitations: Why Timing Matters
Michigan law sets time limits on how long you have to bring a breach of contract claim. For written contracts, the statute of limitations is generally six years from the date of the breach. For oral contracts, the period is shorter. Missing these deadlines can bar your claim entirely, regardless of how strong the underlying facts are.
If you believe a contract has been breached, it is important to consult with an attorney promptly. Even if you are unsure whether the situation rises to the level of a legal claim, getting a professional assessment early preserves your options.
Common Contract Disputes in Oakland County
Across Oakland County, contract disputes arise in a wide range of contexts. Some of the most common include:
Service agreements where one party fails to deliver the agreed work or pay for services rendered
Vendor and supplier contracts where goods are not delivered, are defective, or do not meet specifications
Commercial lease disputes between landlords and tenants
Partnership and shareholder agreements where one party alleges the other has not met their obligations
Construction contracts involving incomplete work, cost overruns, or defective performance
Employment contracts and non-compete agreements
Emily K. Catania represents both plaintiffs and defendants in contract disputes as part of her business litigation and employment law practice in Birmingham, Michigan. She handles disputes for businesses, startups, and individuals throughout Oakland and Wayne Counties and the greater Metro Detroit area.
Serving Businesses and Individuals in Oakland and Wayne Counties
Emily K. Catania is a litigation-focused attorney based in Birmingham, Michigan, recognized as a Super Lawyers Rising Star since 2021 and by Best Lawyers: Ones to Watch for 2026. Both in-person and virtual consultations are available.
The information in this article is provided for general informational purposes only and does not constitute legal advice. Michigan contract law and its application can vary significantly based on the specific facts of each case. If you are dealing with a contract dispute, please consult a licensed attorney for guidance tailored to your situation.
Dealing With a Contract Dispute in Oakland County? Emily K. Catania can help you evaluate your options and protect your interests. Contact our office today for a consultation. Schedule Your Consultation
