Lina,an employee of Manual Labor Industries (MLI),is injured in a work-related accident.Based on the diagnosis of Newt,a doctor,Lina accepts $50,000 from MLI and waives the right to future claims.Newt's diagnosis later proves to have been wrong.Newt's misdiagnosis is,in terms of its impact on Lina's agreement with MLI,

Question

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 Lina and MLI were mistaken about the extent of Lina's injuries, which was a material fact that formed the basis of their agreement.

Lina,an Employee of Manual Labor Industries (MLI),is Injured in a Work-Related