How To Prove A Florida Rescission (Cancellation of Contract) Defense

In Florida, a defense of Rescission (Cancellation of Contract) is defined as:
Rescission allows a party to a contract or agreement to cancel or undo the contract, returning both parties to their original positions as if the contract never existed.
It simply means:
The cancellation of a contract due to legal grounds like fraud, mutual mistake, or other legal grounds.
There are 3 elements of the defense:
- Element 1. The plaintiff made a misrepresentation or omission in regard to a contract. The plaintiff provided false information or left out important details about a contract, which can be a reason to cancel the agreement.
Facts that might support this element look like:
* The plaintiff failed to disclose a significant defect in the property that was the subject of the contract, which materially affected its value.
* The plaintiff represented that the product was new and unused, while it had been previously owned and showed signs of wear.
* The plaintiff omitted critical information about the financial risks associated with the investment, leading the defendant to make an uninformed decision.
* The plaintiff knowingly provided false information regarding the timeline for project completion, which influenced the defendant’s agreement to the contract terms.
* The plaintiff assured the defendant that all necessary permits were in place, despite knowing that several permits were still pending approval. - Element 2. The misrepresentation or omission was of a material fact. A misrepresentation or omission of a material fact means that important information was either falsely stated or left out, which significantly affects the decision to enter into the contract, making it unfair or misleading for one party.
Facts that might support this element look like:
* The seller failed to disclose that the property had a history of flooding, which significantly affects its value and desirability.
* The buyer was not informed that the vehicle had been in a major accident, which would have influenced their decision to purchase.
* The contract included a clause that misrepresented the warranty coverage, leading the buyer to believe they had more protection than was actually provided.
* The omission of the property’s zoning restrictions misled the buyer about potential uses, impacting their investment decision.
* The seller’s failure to disclose ongoing legal disputes related to the property constituted a material fact that would have affected the buyer’s willingness to proceed with the purchase. - Element 3. The defendant relied on the misrepresentation or omission. The defendant must show that they trusted false information or a missing important detail when agreeing to the contract, which influenced their decision to enter into it.
Facts that might support this element look like:
* The defendant entered into the contract believing the plaintiff’s statements about the product’s quality were true.
* The defendant did not conduct independent research because they trusted the plaintiff’s expertise and representations.
* The defendant’s decision to sign the contract was significantly influenced by the plaintiff’s assurances regarding the product’s performance.
* The defendant would not have agreed to the contract if they had known the true nature of the product.
* The defendant relied on the plaintiff’s omission of critical information that would have affected their decision-making process.
(See Florida Statute 517.211. EF Hutton & Co., Inc. v. Rousseff, 537 So. 2d 978 – Fla: Supreme Court 1989.)
If you’re in court without a lawyer and plan to assert a Defense of Rescission (Cancellation of Contract), having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively navigate your legal journey.
Prove Your FL Rescission (Cancellation of Contract) Defense
U.S. Civil Cases Only