CHARLES W SCHNEIDER V JAMES J TOUHY
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STATE OF MICHIGAN
COURT OF APPEALS
CHARLES W. SCHNEIDER,
UNPUBLISHED
May 29, 2001
Plaintiff-Appellee,
v
No. 221519
Oakland Circuit Court
LC No. 98-009893-CK
JAMES J. TOUHY,
Defendant-Appellant.
Before: McDonald, P.J., and Smolenski and K. F. Kelly, JJ.
PER CURIAM.
In this contract dispute, defendant appeals as of right from a circuit court order granting
plaintiff’s motion for summary disposition pursuant to MCR 2.116(C)(10). We affirm. This
appeal is being decided without oral argument pursuant to MCR 7.214(E).
The trial court’s ruling on a motion for summary disposition is reviewed de novo. Gibson
v Neelis, 227 Mich App 187, 189; 575 NW2d 313 (1997). A motion brought under MCR
2.116(C)(10) tests the factual support for a claim. In ruling on such a motion, the trial court must
consider not only the pleadings, but also depositions, affidavits, admissions and other
documentary evidence, MCR 2.116(G)(5), and must give the benefit of any reasonable doubt to
the nonmoving party, being liberal in finding a genuine issue of material fact. Summary
disposition is appropriate only if the opposing party fails to present documentary evidence
establishing the existence of a material factual dispute. Smith v Globe Life Ins Co, 460 Mich
446, 455; 597 NW2d 28 (1999).
The elements of a valid contract are (1) parties competent to contract, (2) proper subject
matter, (3) legal consideration, (4) mutuality of agreement, and (5) mutuality of obligation.
Thomas v Leja, 187 Mich App 418, 422; 468 NW2d 58 (1991). The plaintiff bears the burden of
proving the existence of the contract sought to be enforced. Kamalnath v Mercy Memorial Hosp
Corp, 194 Mich App 543, 549; 487 NW2d 499 (1992).
Mutual agreement or mutual assent refers to a meeting of the minds on all material terms
of the contract. Id. at 548-549. The parties’ mutual assent may be expressed orally or in writing
or by other acts or conduct, Ludowici-Celadon Co v McKinley, 307 Mich 149, 153; 11 NW2d
839 (1943), but is to be “judged by an objective standard, looking to the express words of the
parties and their visible acts, not their subjective states of mind.” Heritage Broadcasting Co v
Wilson Communications, Inc, 170 Mich App 812, 818; 428 NW2d 784 (1988). However, a
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contract for the sale of any land “shall be void, unless the contract, or some note or memorandum
thereof be in writing, and signed by the party by whom the . . . sale is to be made . . . .” MCL
566.108; MSA 26.908. The material terms that must be in writing are the parties to the sale, the
property to be sold, and the price to be paid. Zurcher v Herveat, 238 Mich App 267, 290-291;
605 NW2d 329 (1999).
The original purchase agreement was in writing, signed by defendant, and contained all
material terms. The contract’s amendment was also in writing. When read in conjunction with
the original agreement, it referenced the property, the parties, and changed the purchase price and
terms of payment. Defendant initialed those changes, signed the amendment, and placed the
notation “accepted” next to his name. Based on an objective standard, defendant clearly agreed
to the adjusted price terms in the amended agreement. The fact that he may have harbored a
subjective intention to continue negotiations “is insufficient to show that a meeting of the minds
did not occur.” Heritage Broadcasting Co, supra at 819.
Defendant contends that the amendment constituted a counteroffer which plaintiff failed
to accept. Defendant has failed to preserve this argument by citation to supporting authority.
Price v Long Realty, Inc, 199 Mich App 461, 467; 502 NW2d 337 (1993). Assuming the
amendment was a counteroffer which defendant submitted over his signature, it only had to be
accepted by plaintiff to be valid. Harper Bldg Co v Kaplan, 332 Mich 651, 655-656; 52 NW2d
536 (1952). Plaintiff apparently rejected that counteroffer with a counteroffer of his own, given
that the price terms were crossed out and changed. Cheboygan Co Rd Comm v Auto-Owners Ins
Co, 87 Mich App 681, 684; 277 NW2d 176 (1978). Thus it had only to be accepted by defendant
to be valid. Harper Bldg Co, supra. The objective evidence shows that defendant did accept the
counter counteroffer by initialing the price term changes and writing “accepted” next to his name.
Defendant also contends that the amendment was an offer by plaintiff which he rejected
by writing “We must work out ins. and what if there is a fire” before his name. This contention
is contrary to defendant’s argument that he drafted the amendment as a counteroffer for
plaintiff’s consideration. If both parties accepted the amendment as reflected by their signatures
but left open what was to be done about insurance as reflected by the notation, the writing is
more in the nature of an agreement to make a contract in the future, which would include the
terms set forth in the amendment and an as yet to be determined insurance clause. “A contract to
make a subsequent contract may be just as valid as any other contract. Like any other contract, a
contract to make a contract can fail for indefiniteness if . . . it does not include an essential term
to be incorporated into the final contract.” Opdyke Inv Co v Norris Grain Co, 413 Mich 354,
359; 320 NW2d 836 (1982). Because the amendment, when read in conjunction with the
original purchase agreement, clearly identified the parties, the property, and the consideration, it
contained all material or essential terms. Zurcher, supra at 287, 289-291; Heritage Broadcasting
Co, supra at 819. It was thus enforceable as written. The trial court did not err in so ruling by
granting plaintiff’s motion for summary disposition.
Affirmed.
/s/ Gary R. McDonald
/s/ Michael R. Smolenski
/s/ Kirsten Frank Kelly
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