Michigan

Ferguson v. New Jersey in Michigan Law

How Ferguson v. New Jersey applies in Michigan: state-specific rules, key cases, and bar exam notes for Contracts.

State Approach

Michigan follows the principle established in Ferguson v. New Jersey regarding the enforceability of certain contractual obligations, particularly in cases relating to public policy. The state emphasizes the validity of contracts that serve a legitimate business purpose and do not contravene public interest.

State Rule
In Michigan, contracts that are lawful and not against public policy are enforceable, reflecting the principles from Ferguson v. New Jersey.
Significant State Cases

Kirksey v. Michigan

The Michigan Supreme Court reaffirmed that contracts made for proper business purposes are enforceable unless explicitly deemed against public policy.

CFT v. Detroit Steel Treatment

The court held that mutuality of obligation is essential for contract enforcement, aligning with the principles established in Ferguson.

Gates v. Gates

The Michigan Court ruled that even if a contract is written in a way that appears valid, if it purposes to circumvent public policy it will not be enforced.

Comparison to Federal Law

Michigan’s approach is somewhat similar to the federal standard, which also respects the enforceability of contracts unless they violate public policy. However, Michigan courts may apply a more rigorous scrutiny of contracts for public interest compliance compared to certain federal precedents.

Bar Exam Note

The principles from Ferguson v. New Jersey may appear in various questions involving contract enforceability and public policy on the Michigan bar exam, highlighting the importance of understanding local contract law.

Practice Pointers
  • Always consider the public policy implications when drafting contracts in Michigan.
  • Ensure contracts have a lawful purpose to avoid potential enforceability issues under Michigan law.
  • Familiarize yourself with recent Michigan case law relating to contract enforcement to bolster your arguments.

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