Lenawee County Board of Health v. Messerly Michigan Supreme Court 1982 1) Facts a) The court allowed an injunction in favor of the BOH, which disallowed human habitation of the property until it was brought into conformance with the sanitation code. The tact of land was sold by Mr. and Mrs. Barnes sold one acre but defaulted. Pickleses’ displayed interest and purchased the land for 25,500. The Pickleses went to the land and saw sewage seeping out of the ground and that the sewage tank was improperly set in the ground. 2) History a) Thereafter, the Appellants filed a cross-claim against Appellees, seeking foreclosure based on non-payment and Appellees alternatively prayed for rescission, based on mutual mistake. The trial judge found that Appellees had no cause of action because there had been no fraud or misrepresentation and that the property was purchased “as is”, after inspection, and allowed foreclosure and judgment against Appellees. The court of appeals reversed the no cause of action, based on mutual mistake claim and the Appellants appealed. 3) Issue a) Was the mistaken belief held by one or both parties i) A contractual mistake is a belief that is not in accord with the facts ii) The belief must be held by one or both parties at the time of the contract is executed iii) A recession is granted only at the sound discretion of the court iv) The mistaken belief was held by both parties at the time the contract was executed and both believed the land to be income generating. In this case the risk was allocated to the purchasers as accordance with 154 of Restatements. The land was sold as is and the clause in the contract pushed the risk onto the purchasers and off of the sellers. 4) Judgment: Reversed