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Official Blog of the AALS Section on Contracts

Aristotelian Categories and the Contracts Doctrine of Mistake

April 13, 2022

Aristotle_Altemps_Inv8575I have been thinking about Aristotle more than usual, and more than I care to do, because I have fallen down a rabbit hole, Peter Adamson’s delightful podcast, History of Philosophy Without Any Gaps.  It was great fun, and then we got to Aristotle.  Now, it’s sometimes fun, but also a bit of a slog.  I’m not sure if I’m going to make it to the Renaissance.  I may bolt and try my hand at Indian or African philosophy.

To be clear, I don’t much care for Aristotle.  Not one bit.  As a result, I know and understand very little of Aristotle’s philosophy but, as the Supreme Court once said of pornography, I know it when I see it.  

And I always see it when I teach mistake, because the old chestnuts, Sherwood v. Walker and Wood v. Boynton, seem to me to be based on Aristotelian distinctions between accidental (value) and essential qualities.  But both seem to me to get the analysis exactly wrong.  I am happy to have discovered that I am not alone in remarking on the Aristotelian nature of the inquiry.  Robert Birmingham did so in a philosophical reflection in the form of an essay in 1987.  In a 1999 article, Nascent Modernity in the Case of Sherwood v. Walker — An Intertextual Proposition (35 Willamette L. Rev. 315), Alani Golanski expressed my view precisely.  These courts engaged in Aristotelian terminology but got the analysis completely wrong.  

[T]he Sherwood court misused the Aristotelian vocabulary. In those terms, it was precisely the “substance” of the thing for which Sherwood and Walker had bargained about which there was no mistake. In other words, as understood by Aristotle, examples of substance are “man,” “horse,” or “cow.” The parties in Sherwood knew they were dickering over a cow and therefore fully appreciated the Aristotelian substance of the thing.
. . . In Aristotle’s scheme, an accident may or may not belong to a given thing. For example, a horse may be “awake” or “asleep.” “Likewise also whiteness; for there is nothing to prevent the same thing being at one time white and at another not white.” More to the point, a cow may be at one time “barren” and at another “fertile.”
And so, when I think about Sherwood and Boynton, I find them wrongly decided in their own Aristotelian terms every time.  Sherwood was about a cow, and the “cowness” of Rose 2d of Aberlone was never at issue.  There was no mistake as to the essence of the consideration and so, by the reasoning of that court, recourse to mistake doctrine should have been unavailing.  On the other hand, a topaz and a diamond are different things, and so the mistake in Boynton went to the essence of the matter, not to its accidental qualities.  The Eagle Diamond should have been returned to the finder.
 
I love these cases, but hate both their reasoning and their results.  Perhaps I could live in an Aristotelian world if those courts would apply that reasoning correctly.  But I prefer to live in the world of the Restatement, in which liability in these cases tends to come down to the question of who bore the risk of the mistake.
 

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