LeBre on Law: Read carefully before you sign a contract

Published 9:32 pm Wednesday, August 29, 2012

By William L. LaBre, J.D.

More than 25 years ago, I wrote a weekly column titled “LaBre on Law.”

I had been practicing law long enough by then to know that most people did not understand much about the law, and got into trouble due to that ignorance.

Since that time, the law has changed. People who read my columns then have grown older. My son, Robert, who then had just started preschool, became a Recon Marine, graduated from college with honors, has published in the Michigan Bar Journal and is now a lawyer working with me at the LaBre Law Office. Between us, we have decided to resume this weekly column in the hope that all who read it will gain in knowledge and be helped in navigating the rules that govern our society.

“Mr. LaBre,” he said, “look at this letter from that lawyer! It says that I owe $50,000. It says that I have to keep paying on that timeshare condo, even though I don’t go there anymore. It even says that, if I don’t pay, there’s interest, late charges, assessments and attorney fees.

That lawyer wants me to pay $5,000 right now, or he’ll sue me for the whole $50,000, and ask for attorney fees on top of it.

“All I wanted was a vacation spot for my family. I thought, when I signed it, that if I didn’t want to use the timeshare any more, then I could just quit paying. I didn’t know about all of that other stuff; no one explained it to me. Do I have to pay?”

“Let me see the papers,” I said. “Unless I read the documents, I don’t know what you signed.”

I read through the papers; sure enough, everything that he said was in the documents.

“Well,” I said, “that lawyer is right. Michigan has a law, called the “Condominium Act.” That law authorizes everything that is in the papers you showed me.”

“But no one explained this to me when I signed. That’s not fair! They should have explained all of this to me.”

“This is one of the ways in which the law has changed,” I replied. “Now, the law says that, unless you’re incompetent, if you sign it, and it’s legal, you’re bound to it.”

“But doesn’t the salesman have to tell me what I’m signing?”

“No, he doesn’t. The salesman can’t lie to you about what’s in the document.

But the salesman doesn’t have to explain what’s in it. You have to read what you sign, and, if you don’t understand it, take the document to your lawyer. If you don’t take it to your lawyer, and you sign it anyway, Oh, well. You’re bound to what you sign.”

“Is there anything I can do?”

“Let’s talk about it. First, tell me all about the condo,” I said.