
Contract Law: Lenawee County Board of Health v. Messerly (Mutual Mistake)
Ian Ayres, teaching American Contract Law at Yale, uses Lenawee County Board of Health v. Messerly to explain the mutual mistake defense to contract formation. The case involves a house sold for use as a rental property that turns out to have a failed sewage system, a defect neither buyer nor seller knew about at the time of sale. Ayres walks through how courts decide whether such a shared mistake voids the contract, focusing on who bore the risk of the unknown defect and how the doctrine differs from unilateral mistake. The lecture sits within a broader unit on formation defenses and promissory liability, and treats the case as a vehicle for testing when courts will excuse a party from a bargain both sides entered under a false shared assumption.