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Memorandum
From: Sarah Chen, Senior Partner · Re: Ortiz v. Lakewood Builders
Our client, Maria Ortiz, entered into a contract with Lakewood Builders for renovation of a commercial property at 1847 Harbor Drive. The contract price was $340,000.
Three months into the project, Lakewood discovered pre-existing structural damage requiring remediation. Lakewood now claims this constitutes a mutual mistake.
Analysis: Ortiz v. Lakewood
Issue: Whether Lakewood Builders may obtain reformation.
Rule: Under Restatement (Second) of Contracts §152, a mutual mistake as to a basic assumption renders the contract voidable.
Application: Here, the structural damage predated the agreement. However, the "accepts the property in its current condition" clause