Fact Pattern 14-A1
Dina, an employee of Eagle Industries, is injured in a work-related accident. Based on the diagnosis of Frank, a doctor, Dina accepts $50,000 from Eagle and waives the right to future claims. Frank's diagnosis later proves to have been wrong.
-Refer to Fact Pattern 14-A1. According to the reasoning of the court in Case 14.1, Roberts v. Century Contractors, Inc., Frank's misdiagnosis is, in terms of its impact on Dina's agreement with Eagle,
A) a mutual mistake of fact.
B) a unilateral mistake of fact.
C) fraudulent misrepresentation.
D) nonfraudulent misrepresentation.

Question

Fact Pattern 14-A1 
Dina, an employee of Eagle Industries, is injured in a work-related accident. Based on the diagnosis of Frank, a doctor, Dina accepts $50,000 from Eagle and waives the right to future claims. Frank's diagnosis later proves to have been wrong.
-Refer to Fact Pattern 14-A1. According to the reasoning of the court in Case 14.1, Roberts v. Century Contractors, Inc., Frank's misdiagnosis is, in terms of its impact on Dina's agreement with Eagle,
A) a mutual mistake of fact.
B) a unilateral mistake of fact.
C) fraudulent misrepresentation.
D) nonfraudulent misrepresentation.

Quizplus · Accepted Answer

A mutual mistake of fact occurs when both parties to a contract are mistaken about a material fact that forms the basis of the contract. In this case, both Dina and Eagle were mistaken about the extent of Dina's injuries, which was a material fact that formed the basis of their agreement.