It very well might. Contracts only have to be in writing for certain things like sale of real estate, etc. Don't think the fact there isn't a signed contract will save you from suit or ultimate liability. There may be a settlement in order as well. If you do get sued, hire a local attorney familiar with litigating these matters.
It sounds to me as if the contract is not being denied, but rather you are being sued due to the purchaser's dissatisfaction with the product.
You got the $30K, and he got the websites which he was allowed to view and test prior to acceptance.
You will need an attorney to defend yourself and a welcome to call my offices. the purchaser can bring a suit and make his claims, the question is if he can prevail and what you costs of defense will be.
Talk to an attorney PRIOR to speaking with the purchaser and especially his attorney.
I wish you luck, and would state my opinion you will need less of it if you are properly represented and do not attempt to play lawyer. I will not attempt to program web sites, if you do not promise not to attempt to practice law.
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You are correct that Michigan has a statue of frauds that gennerally requires the sale of goods over $1,000.00 to be in writing to be enforceable. However, there are several exceptions. One of the exceptions is that the goods have already been exchanged money. In your case, the buyer received to product and you received the money. Therefore, the buyer can sue you for an alleged breach of contract. However, you may have other defenses. Consult an attorney familiar with Michigan contract law.
Here is the full text of the Michigan statute of frauds:
440.2201 Formal requirements; statute of frauds.
(1) Except as otherwise provided in this section, a contract for the sale of goods for the price of $1,000.00 or more is not enforceable by way of action or defense unless there is a writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his or her authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this subsection beyond the quantity of goods shown in the writing.
(2) Between merchants, if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against the party unless written notice of objection to its contents is given within 10 days after it is received.
(3) A contract that does not satisfy the requirements of subsection (1) but is valid in other respects is enforceable in any of the following circumstances:
(a) If the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement.
(b) If the party against whom enforcement is sought admits in his or her pleading or testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this section beyond the quantity of goods admitted.
(c) With respect to goods for which payment has been made and accepted or that have been received and accepted under section 2606.
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