Michigan design service contract template
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How Michigan design service contract Differ from Other States
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Michigan contracts must comply with the Michigan Statute of Frauds, requiring certain agreements to be in writing to be enforceable.
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Michigan allows the use of electronic signatures under the Uniform Electronic Transactions Act, ensuring digital contracts are valid.
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Intellectual property ownership and assignment clauses in Michigan are subject to state-specific interpretations differing from other states.
Frequently Asked Questions (FAQ)
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Q: Is a written design service contract required by law in Michigan?
A: While not all contracts must be in writing, Michigan law requires written contracts for certain types, like those exceeding one year.
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Q: Are electronic signatures valid on Michigan design service contracts?
A: Yes, Michigan recognizes electronic signatures for contracts as valid under the state's Uniform Electronic Transactions Act.
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Q: Should a Michigan design service contract include specific intellectual property terms?
A: Yes, it is recommended to include clear intellectual property rights clauses to avoid disputes and ensure legal clarity under Michigan law.
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Michigan Design Service Contract
Date: [Date of Signing]
This Michigan Design Service Contract (the “Agreement”) is made and entered into as of the date above, by and between:
- [Design Service Provider Legal Name], a [Business Entity Status, e.g., Michigan Limited Liability Company] with a principal place of business at [Design Service Provider Principal Address], Phone: [Design Service Provider Phone], Email: [Design Service Provider Email] (hereinafter referred to as “Designer”), and Michigan business registrations: [Michigan business registrations, if applicable. e.g., Assumed Name Certificate filed with [County Clerk]].
- [Client Legal Name], a [Business Entity Status, e.g., Michigan Corporation] with a principal place of business at [Client Principal Address], Phone: [Client Phone], Email: [Client Email] (hereinafter referred to as “Client”).
1. Project Scope
- Option A: Detailed Project Description
- The Designer shall provide the following design services to the Client: [Detailed Description of Design Services, e.g., graphic design, industrial design, interior design, architectural design, or digital/UI-UX design]. The business purpose of the deliverables is [Business Purpose of Deliverables]. The intended use/medium is [Intended Use/Medium, e.g., commercial print, digital/web, product packaging]. Context relevant to the Michigan market: [Michigan Market Context].
- Option B: Summary Project Description with Exhibit
- The Designer shall provide the design services described in Exhibit A attached hereto.
2. Deliverables
- Option A: Comprehensive List
- The Designer shall provide the following deliverables:
- [Deliverable 1 Name]: [Format, Medium, Color Profiles, Resolution, Software Versions, Production Files, Prototypes, Versioning Requirements, Functional and Aesthetic Specifications].
- [Deliverable 2 Name]: [Format, Medium, Color Profiles, Resolution, Software Versions, Production Files, Prototypes, Versioning Requirements, Functional and Aesthetic Specifications].
- [Deliverable 3 Name]: [Format, Medium, Color Profiles, Resolution, Software Versions, Production Files, Prototypes, Versioning Requirements, Functional and Aesthetic Specifications].
- Etc.
- The Designer shall provide the following deliverables:
- Option B: General Description with Specifications Document
- The Designer shall provide the deliverables as detailed in the Deliverables Specification Document attached as Exhibit B.
3. Milestone Schedule & Acceptance
- Option A: Defined Milestones with Dates
- The project will proceed according to the following milestones:
- Milestone 1: [Milestone Description]. Completion Date: [Date]. Acceptance Criteria: [Acceptance Criteria].
- Milestone 2: [Milestone Description]. Completion Date: [Date]. Acceptance Criteria: [Acceptance Criteria].
- Milestone 3: [Milestone Description]. Completion Date: [Date]. Acceptance Criteria: [Acceptance Criteria].
- Etc.
- The project will proceed according to the following milestones:
- Option B: Phased Approach with Review Points
- Phase 1: [Phase Description]. Review Point: [Review Point Description]. Approval Deadline: [Business Days] from presentation.
- Phase 2: [Phase Description]. Review Point: [Review Point Description]. Approval Deadline: [Business Days] from presentation.
- Etc.
4. Client Obligations
- The Client shall provide the following to the Designer:
- Required Input: [Description of Required Input].
- Reference Materials: [List of Reference Materials, e.g., Brand Guidelines].
- Feedback/Approval Response Time: [Number] Michigan business days.
- Ownership/Licensing of Supplied Materials: The Client warrants that it owns or has licensed all materials provided to the Designer and that use of these materials will not infringe upon the rights of any third party.
5. Location of Services and Travel
- Option A: On-Site Services
- Services will be rendered at the Client's Michigan location: [Client Address]. Client site access terms: [Access Terms].
- Option B: Remote Services
- Services will be rendered remotely.
- Option C: Hybrid Services
- Services will be rendered both at the Client's Michigan location and remotely. Travel requirements: [Travel Requirements]. Reimbursement for in-state travel will be at the current Michigan statutory reimbursement maximum.
6. Service Fees and Payment
- Option A: Fixed Fee
- The total fixed fee for the services is [USD Amount] USD.
- Payment Schedule:
- [Percentage]% upon signing of this Agreement.
- [Percentage]% upon completion of Milestone [Milestone Number].
- [Percentage]% upon final delivery and acceptance of all Deliverables.
- Payment Schedule:
- The total fixed fee for the services is [USD Amount] USD.
- Option B: Hourly Rate
- The hourly rate for the Designer’s services is [USD Amount] USD per hour. Designer will provide detailed invoices conforming to Michigan commercial practices, including required tax identification numbers.
Michigan sales/use tax [will/will not] apply to the services. Tax Identification Number (TIN): [TIN, if applicable].
7. Late Payment
Late payments shall accrue interest at a rate of [Percentage]% per month, not to exceed the legal limit allowed under Michigan law.
8. Intellectual Property
Upon full payment, copyright and moral rights for custom design works, as required by the Client, are transferred to the Client. The Designer retains the right to reuse generic elements and display the work in their portfolio. Record-taking of assignment shall comply with Michigan law.
9. Ownership and Retrieval of Source Files
Upon project completion, Client will be provided with source files. Designer will retain a copy of the source files for [Number] years, after which they may be destroyed, subject to Michigan records retention rules.
10. Confidentiality
Both parties shall safeguard all business, product, customer, and design information obtained during the project, using nondisclosure standards compliant with Michigan law. These obligations survive termination of this Agreement.
11. Proprietary Rights and Indemnification
Each party shall indemnify and hold harmless the other from any and all claims, damages, losses, and expenses arising out of or relating to any unauthorized third-party IP use. This clause is interpreted according to Michigan’s statutory and case law standards.
12. Conflict of Interest
The Designer shall not work with direct competitors of the Client in Michigan markets during the term of this Agreement, unless otherwise agreed to in writing by the Client.
13. Design Quality and Defect Remediation
Client has [Number] Michigan business days for acceptance testing/feedback. The Designer has [Number] business days to make mandatory corrections. The warranty period for design flaws is [Number] months, excluding changes in client requirements. Disputes about quality will be escalated and resolved locally.
14. Scope Changes
Any changes to the scope of services must be documented in writing and signed by both parties. Adjustments to the timeline or payment will be made accordingly. The hourly rate for out-of-scope work is [USD Amount] USD, with direct reference to Michigan contract modification rules (including consideration requirements).
15. Force Majeure
Neither party shall be liable for delays caused by events beyond their reasonable control, including acts of God, government orders, or local supply disruptions, consistent with Michigan’s legal definition of excusable delays. Timely mitigation obligations apply.
16. Term and Termination
- Option A: Fixed Term
- This Agreement shall commence on [Start Date] and shall continue until [End Date].
- Option B: Indefinite Term
- This Agreement shall continue until terminated by either party upon [Number] days written notice.
Upon termination, the Client shall pay the Designer for all completed or in-progress work. All confidential information shall be returned or destroyed. Dispute settlement of outstanding claims will be governed by Michigan law.
17. Breach
Breach includes delay, non-delivery, unsatisfactory or nonconforming work, misuse of materials, failure to make payment, or information leakage. Remedies, penalties, liquidated damages (if any), or cure periods will be allowed under Michigan law (typically a reasonable opportunity to cure).
18. Insurance
The Designer shall maintain professional liability (E&O) insurance and general business insurance to levels common in Michigan’s design industry. The Client has the right to request and review certificates of insurance.
19. Licensing and Registrations
The Designer represents that they hold all required local and state licensing or registrations for their design profession, including Michigan LARA licensing for architecture or engineering services if applicable.
20. Compliance with Michigan Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, including the Michigan Uniform Commercial Code where relevant, local business licensing ordinances, and state-specific data protection or consumer protection laws.
21. Dispute Resolution
Any disputes arising out of or relating to this Agreement shall be resolved through good-faith negotiation, Michigan-local mediation, and if unsuccessful, Michigan-based arbitration or litigation. Exclusive jurisdiction and venue shall be in the courts of competent jurisdiction in the State of Michigan.
22. Data Rights and Handling
All data rights and handling practices will be in accordance with Michigan’s rules concerning disposal or destruction of sensitive client information, including MCL 445.63r for data disposal standards.
23. Entire Agreement
This Agreement constitutes the entire agreement between the parties in accordance with Michigan’s parol evidence rule, voids prior oral or written agreements, and any amendments must be in writing and signed by both parties.
24. Severability, Waiver, and Assignment
This Agreement contains a severability clause conforming to Michigan law, a waiver clause specifying non-waiver of rights from one party’s failure to enforce, and assignment/non-assignment language limiting the transfer of contractual duties or benefits as per Michigan’s anti-assignment case law.
25. Scheduling, Collaboration, and Compliance
Scheduling, collaboration methods, communication formats, and any client/contractor compliance with Michigan-specific union, diversity, or affirmative action requirements are open and will be documented as needed for the project’s nature.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Design Service Provider Legal Name]
By: [Name of Authorized Representative]
Title: [Title of Authorized Representative]
[Client Legal Name]
By: [Name of Authorized Representative]
Title: [Title of Authorized Representative]