Which of the following constitute a mutual mistake of a material fact?
A) Martha selling her house to Graham and hiding the fact that its first floor is damaged
B) Martha and Graham agreeing on the sale of a house, but both referring to different houses
C) Graham buying a house from Martha without asking her details of damages
D) Martha selling Graham an old vase for $20, both of them unaware that it is a valuable antique collectible

Question

Quizplus · Accepted Answer

In option B, both the parties are referring to different houses which means that they have misrepresented the property due to a mistake, making it a mutual mistake of a material fact. In option A, there is only Martha hiding the damage, making it a unilateral mistake. Option C is an example of Graham's own negligence and not a mutual mistake. Option D is also a unilateral mistake as only Martha is unaware of the vase's value.

Which of the Following Constitute a Mutual Mistake of a Material