Lenawee County Board of Health v. Messerly

Lenawee County Board of Health v. Messerly, 331 N.W.2d 203 (1982) is a US contract law case decided by the Supreme Court of Michigan. It used a risk of loss analysis to justify the denial of rescission as a contract remedy despite the presence of mutual mistake.[1]

Facts

The Pickles bought a 600-square-foot (56 m2) three unit dwelling for use as a rental property from the Messerly's, only to discover that an illegal septic system had contaminated the ground. Pickles sought rescission and Messerly sought a deficiency judgment.

Judgment

The Supreme Court of Michigan backed away from the precedent of Sherwood v. Walker in favor of the Restatement (Second) of Contracts, and relied on an "as is" clause in the land contract to deny rescission.[2]

See also
  • US contract law

Notes
  1. Ayres, I. & Speidel, R.E. Studies in Contract Law, Seventh Edition. Foundation Press, New York, NY: 2008, p. 508
  2. Ayres, p. 508
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