Mistake of law occurs when a party, though aware of the facts, reaches an erroneous conclusion about their legal ramifications.

• A. Mistake of fact
• B. Mistake of value
• C. Mistake of law
• D. Mistake in interpretation

Answer: (C)

Mistake of law is when someone knows the facts but misreads how the law applies to those facts. The statement fits this idea because the person is aware of what happened, yet arrives at an incorrect legal conclusion about the consequences. That distinction is what makes it a mistake of law rather than a mistake about what occurred. If the belief were about the actual events themselves—what happened—the issue would be a mistake of fact. Mistake about value concerns whether something is worth more or less, not the legal rules that govern it, and a vague “mistake in interpretation” isn’t the standard legal term for misapplying the law to known facts.