How To Prove A Florida Failure of Consideration Defense

 

 

In Florida, a defense of Failure of Consideration is defined as:

Failure of Consideration implies that a consideration, originally existing and good, has since become worthless or has ceased to exist or been extinguished, partially or entirely. Sufficient consideration was contemplated by the parties at the time the contract was entered into, but either on account of some innate defect in the thing to be given, or nonperformance, nothing of value can be received by the promisee.

It simply means:

When the item or service offered in a contract no longer exists or has value.

There are 4 elements of the defense:

• Element 1. There was a contract between the parties. A contract existed between the parties, meaning they had a formal agreement outlining their obligations and expectations, which is essential for claiming a Failure of Consideration Defense when one party believes the other did not fulfill their part of the deal.
  

  Facts that might support this element look like:

  * The parties exchanged signed documents outlining the terms of the agreement, indicating mutual assent.
  * Both parties performed specific obligations as outlined in the contract, demonstrating their intent to be bound by its terms.
  * Payment was made by one party in exchange for goods or services provided by the other, fulfilling the contract’s consideration requirement.
  * Correspondence between the parties confirms their understanding and acceptance of the contract terms prior to performance.
  * The parties engaged in negotiations that culminated in a clear agreement, evidencing the existence of a contractual relationship.

• Element 2. The defendant did not receive the performance or consideration that was promised in the contract. The defendant can argue that they didn’t get what they were promised in the contract, meaning they didn’t receive the agreed-upon benefits or services, which can be a valid reason for not fulfilling their own obligations.
  

  Facts that might support this element look like:

  * The defendant was promised a specific quantity of goods, but only a fraction of the order was delivered.
  * The services outlined in the contract were not performed as agreed, resulting in significant delays and losses for the defendant.
  * The quality of the goods received did not meet the standards specified in the contract, rendering them unusable for the defendant’s purposes.
  * The defendant made a payment based on the expectation of receiving full performance, which was never fulfilled by the plaintiff.
  * The contract stipulated a timeline for delivery, but the plaintiff failed to meet any of the agreed-upon deadlines.

• Element 3. The plaintiff failed to perform a significant or essential term of the contract. The plaintiff did not fulfill an important part of the contract, which means they didn’t hold up their end of the deal, making it difficult for them to claim that the other party should provide what was promised.
  

  Facts that might support this element look like:

  * The plaintiff did not deliver the agreed-upon goods by the specified deadline, which was a critical term of the contract.
  * The plaintiff failed to provide the necessary documentation required for the completion of the project, hindering progress.
  * The plaintiff neglected to make the scheduled payments as outlined in the contract, breaching a fundamental obligation.
  * The plaintiff did not meet the quality standards specified in the contract, resulting in a significant deviation from the agreed terms.
  * The plaintiff’s refusal to cooperate in the performance of the contract’s terms led to delays and unmet obligations.

• Element 4. There is a causal connection between the breach and the failure of consideration. A causal connection between the breach and the failure of consideration means that the reason something was not delivered or fulfilled is directly linked to the other party not keeping their promise, showing that one issue caused the other.
  

  Facts that might support this element look like:

  * The defendant failed to deliver the agreed-upon goods, which were essential for the plaintiff’s business operations.
  * The plaintiff incurred significant losses due to the defendant’s breach, directly impacting their ability to fulfill contractual obligations.
  * The plaintiff’s investment in the contract was predicated on the defendant’s performance, which did not occur.
  * The lack of performance by the defendant resulted in the plaintiff being unable to generate expected revenue.
  * The plaintiff’s reliance on the defendant’s promises was reasonable and directly linked to the subsequent financial losses experienced.

^{(See Florida Statute 673.3031 – Uniform Commercial Code.)}
If you’re in court without a lawyer and plan to assert a Defense of Failure of Consideration, it’s essential to have a Personal Practice of Law at Courtroom5. You’ll need to make critical decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Our platform can guide you through this complex process, ensuring you’re well-prepared to present your defense effectively.

Prove Your FL Failure of Consideration Defense

U.S. Civil Cases Only