Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 28

General Tire decided to terminate Horst Mehlfeldt's employment and through its vice president of human relations, Ross Bailey, made several proposals to Mehlfeldt in lieu of the benefits provided in his employment contract. Bailey thought Mehlfeldt had accepted a proposal, while Mehlfeldt expected a larger final figure. In drafting a separation agreement, Bailey made a mistake so that General Tire had to pay $494,000-the total Bailey had offered-plus what the employment contract specified. Mehlfeldt thought the larger amount was a result of his request for more money and signed the agreement. General Tire paid him $494,000. When Mehlfeldt asked when he would get the rest, General Tire realized the mistake. It sued, alleging mutual mistake. Was it? [ Gen. Tire Inc. v. Mehlfeldt , 691 N.E.2d 1132 (Ohio Ct. App.)]