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Federal lawsuit filed in Michigan over luxurious handbags

Detroit residents make agreements with each other on a daily basis, whether they realize it or not. Individuals deal with one another at home and in the office by agreeing on a certain course of action and following through with those agreements.

Problems can arise, however, when these agreements do not turn out as initially intended. For instance, when individuals or companies are dealing with others, one party may believe their agreement means one thing, while the other side believes something completely different. These differences of opinion can have serious implications in contract law, resulting in a legal dispute that has to be brought before a judge or jury to resolve.

For example, a Michigan individual and his business were recently sued after a dispute arose with the sale of five luxury handbags allegedly worth $69,500. The plaintiff claims the parties agreed the handbags would be sold for $61,500, with a $20,000 deposit made under the agreement of the parties. However, the plaintiff claims the buyer never paid the balance of the bags, which have since been sold to a third party.

The case was filed in Michigan federal court. While Michigan law applies to cases in federal court involving contract disputes, the procedure varies from those cases asserted in state court.

Accordingly, individuals involved in disputes need to not only know the substantive law of Michigan that applies to breach of contract actions, but the procedural differences that exist between federal and state courts. By having a solid grasp of contract law and the procedural law where the case is filed, individuals can put themselves in the best possible position to succeed in the lawsuit and defend their contract rights.

Source: MLive, "Five handbags worth $69,500 at center of federal lawsuit," Khalil AlHajal, August 12, 2015

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