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Lenawee County Board of Health v. Messerly

Lenawee County Board of Health v. Messerly - Rule A court...

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Lenawee County Board of Health v. Messerly 417 Mich. 17 (1982) Fact: Operative Facts: The Pickles bought a 3 unit apartment complex that was 600sqft. After the transaction was completed, the Pickles found that raw sewage seeped up through the ground, and the Health department closed it down right away, deeming it uninhabitable to humans. The Pickles wants the contract to be receded. However, the Messerly states that there is an “as-is” clause in the contract, which puts the burden of inspection on the buyer. Issue: Whether the contract can be receded, when there is an “as-is” clause.
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Unformatted text preview: Rule: A court may grant rescission of a contract if the mistake related to a basic assumption of the contract and the effect of the mistake is significant unless the party seeking rescission assumed the risk of loss. Rational: There was the “as is” clause and that moves the burden of risk to the buyers to do their due diligent. They cannot recede the contract because of their mistake. Holding: Pickles are not entitled to the remedy of rescission. Synthesis: Dissent/Concurrences:...
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