LECTURE: 2/15/12 TOPIC: Mistake CASE: Lenawee v.

Messerly MISTAKE This topic is very similar to duress etc, reasons to rescind the K.

Lenawee v. Messerly This topic sometimes touches misrepresentation The general approach is that you are stuck with the contract. Why is the case for today a case of whining people? Someone invested in property to make money, signed a K, then found out that no one can live there (sewage problem). They went and complained. Why is the first answer no excuses? Why are we reluctant to acknowledge this? They are buying the property As Is this means they promised not to whine. Sanctity of the K we have a contract! It is not a joke. We want to create the right incentive. In this context, we want to make people prudent buyers. We dont want to make this OK. Check what you are buying carefully, so dont let them off the hook. What would be the difference between duress etc. and mistake? o No villain in this case; its not one weak party. o We have less justification. o No fault of the other party. Courts dont like to deal with mistake; its too amorphous. Can tell what was actually going on. o Its difficult to work with beliefs. Restatement 152 Shared belief that is not in accord with the facts. o In our case, the shared belief was they could rent it out; fact was they couldnt. Mistake with regard to a basic assumption of the K Mistake that has material effect on the exchange No assumption of the risk (of such mistake) by the adversely affected party.