[Sale of Jeppo's Distillery] Kellen and Jerrad owned Jeppo's Distillery together for many years. After years of arguing about sharing an office, they decided they no longer wanted to work together, even though each wanted to remain in the distillery distribution business. They asked their accountant, Delia, to separate the accounts equitably, and she prepared a spreadsheet showing the value of Jeppo's Distillery's accounts, and an equitable division of those accounts. Kellen and Jerrad reviewed the division of accounts and signed a separation agreement that included a phrase that the accounts would be divided 50-50 as per Delia's spreadsheet attached to the agreement. Both Kellen and Jerrad signed a disclaimer that stated that they had reviewed the attachment. Six months later, when commissions arrived for the two separate companies, Kellen noticed that he was making substantially less than one-half of what he made with Jeppo's Distillery, and upon investigation, realized that some of the financial information on which Delia had relied in preparing the spreadsheet had been outdated, and the accounts, were in fact, not divided equally. Kellen now wants to rescind the separation agreement, claiming that all three elements of mutual mistake are present, and that the mistake about the division of accounts had a material effect on the agreement because it was not what was intended.

Is Kellen correct in claiming that the mistake in the division of the accounts is material?

Multiple Choice

Yes, if it was a basis for Kellen's agreeing to enter into the contract.

No, because the mistake was in the financial information.

Yes, because only one party must show that the mistake was not what was intended.

Yes, because Kellen made a mutual mistake.

No, because the mistake is not mutual since only Kellen, and not Jerrad, was adversely affected.