Mistake of fact involves errors regarding the facts of a contract, such as misunderstandings about the location of land being conveyed.

• A. Mistake of law
• B. Mistake of capacity
• C. Mistake of value
• D. Mistake of fact

Answer: (D)

Mistake of fact is tested here. It covers misunderstandings about the actual facts of the contract—the true circumstances of what is being exchanged. If someone thinks the land is located somewhere other than where it actually is, that’s a factual error about the subject matter, not a question about law, capacity, or value.

Mistake of law would mean a wrong belief about what the law requires or permits, not about the facts of the deal. Mistake of capacity involves questions about a person’s ability to understand or consent. Mistake of value concerns how much the subject matter is worth, which is about worth or opinion rather than the factual existence or description of the property.