Which of the following situations appears to involve a ‘common mistake’? January 1, 2023 by admin A beneficiary and an insurance company negotiated a life insurance policy, both unaware that the subject of the life insurance policy was in fact already dead. X, who spoke little English, signed a document granting Y an option, believing it to be a receipt. This belief was encouraged by Y. X purchased goods on credit from Y, believing Y to be Z. Y was aware of X’s mistake. Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. See Answer A beneficiary and an insurance company negotiated a life insurance policy, both unaware that the subject of the life insurance policy was in fact already dead.