MI Bar State-Specific Essay 1 â Questions and Answers
Question 1: In Michigan, which of the following is true about the statute of limitations for breach of a written contract?
- The statute of limitations is 3 years from the date of breach.
- The statute of limitations is 6 years from the date of breach. (Correct answer)
- The statute of limitations is 10 years from the date of breach.
- The statute of limitations is 2 years from the date of breach.
Correct answer: The statute of limitations is 6 years from the date of breach.
In Michigan, the statute of limitations for actions founded on contracts, including written contracts, is generally six years. This is stipulated under Michigan Compiled Laws (MCL) 600.5807(8). The six-year period begins from the date the breach of contract occurs, after which legal action cannot typically be pursued.
Question 2: Under Michigan law, what is the primary difference between a "warranty deed" and a "quitclaim deed"?
- A warranty deed provides no guarantees about the title, while a quitclaim deed guarantees the title.
- A warranty deed includes guarantees about the title, including that the grantor holds clear title, whereas a quitclaim deed provides no such guarantees. (Correct answer)
- A warranty deed is used for transferring personal property, while a quitclaim deed is used for transferring real property.
- A warranty deed is used for transferring real property, while a quitclaim deed is used for transferring personal property.
Correct answer: A warranty deed includes guarantees about the title, including that the grantor holds clear title, whereas a quitclaim deed provides no such guarantees.
The primary difference lies in the guarantees provided regarding the property's title. A warranty deed offers the highest level of protection to the buyer, as the grantor guarantees clear title and agrees to defend against any future claims to the property. In contrast, a quitclaim deed merely transfers whatever interest the grantor possesses, without any warranties or promises about the title's validity or absence of encumbrances.
Question 3: In Michigan, which of the following best describes the requirements for a valid will?
- The will must be in writing, signed by the testator, and witnessed by two disinterested witnesses. (Correct answer)
- The will must be in writing, signed by the testator, and notarized by a notary public.
- The will must be in writing, signed by the testator, and witnessed by three disinterested witnesses.
- The will must be in writing and signed by the testator, with no witnesses required.
Correct answer: The will must be in writing, signed by the testator, and witnessed by two disinterested witnesses.
Under Michigan law (MCL 700.2502), a valid will must meet specific formal requirements. It must be in writing, personally signed by the testator (or by another person in the testator's conscious presence and at their direction), and attested to by at least two disinterested witnesses who sign after witnessing either the testator's signing or their acknowledgment of the signature or the will.
Question 4: In Michigan, which of the following actions is required to create an enforceable lien on real property?
- Filing a notice of lien with the local county clerkâs office.
- Recording a mortgage or deed of trust with the county register of deeds. (Correct answer)
- Submitting a lien claim form to the local court.
- Providing written notice of the lien to the property owner.
Correct answer: Recording a mortgage or deed of trust with the county register of deeds.
To create an enforceable lien on real property in Michigan that provides public notice and establishes priority, the lien instrument must be recorded. Recording a mortgage or deed of trust with the county register of deeds is the standard method to legally establish a security interest in real property, making it binding against third parties and future purchasers. This public record ensures transparency and protects creditors' interests.
Question 5: In Michigan, which of the following is true regarding the "collateral source rule"?
- A plaintiffâs recovery can be reduced by the amount received from collateral sources such as insurance.
- A plaintiffâs recovery is not reduced by the amount received from collateral sources, such as insurance. (Correct answer)
- A plaintiffâs recovery is increased by the amount received from collateral sources.
- Collateral source payments are only relevant in determining the defendant's liability, not the damages awarded.
Correct answer: A plaintiffâs recovery is not reduced by the amount received from collateral sources, such as insurance.
The collateral source rule in Michigan dictates that a plaintiff's recovery for damages in a personal injury case is generally not reduced by payments received from independent sources, such as their own insurance. This rule prevents the defendant (the tortfeasor) from benefiting from the plaintiff's foresight in securing insurance or other benefits, ensuring the plaintiff is fully compensated for their losses. The defendant remains liable for the full extent of the damages they caused.
MI Bar State-Specific Essay 1
In Michigan, which of the following is true about the statute of limitations for breach of a written contract?