Question 1

How does rescission work as a contract remedy in Florida?

Accepted Answer

Remedy: rescission is an alternative to damages. Instead of suing for money: the injured party asks the court to cancel the contract and restore both parties to their pre-contract positions. Steps: the party discovers the grounds for rescission (fraud, mistake, etc.), promptly notifies the other party of the intent to rescind, returns any benefits received under the contract (the party cannot keep the benefits and also rescind), and if the other party refuses to cooperate: files a lawsuit for rescission. The court orders: the contract cancelled, restitution of all benefits, and any additional equitable relief needed to restore the parties.

Question 2

When should a party choose rescission over damages in Florida?

Accepted Answer

Choose rescission when: the contract is fundamentally flawed (the party would not have entered the contract if they had known the true facts), the subject matter is defective (the property or goods received are substantially different from what was promised), damages are difficult to calculate (the losses are uncertain or speculative), or the party wants to be free from the contract (rather than being bound to it with a money judgment). Choose damages when: the party wants to keep the benefits of the contract, the damages are easily quantifiable, or the party has already substantially performed under the contract.

Question 3

What is the "election of remedies" doctrine in Florida?

Accepted Answer

Election: in Florida, a party must choose between: rescission (undo the contract and return everything) and damages (keep the contract and recover money for the breach). The party cannot have both: if the party elects rescission, they cannot also recover expectation damages (because the contract has been cancelled), but if the party elects damages, they cannot also rescind (because they are affirming the contract). The election is typically made when the party files the lawsuit (the complaint specifies whether the party seeks rescission or damages). However: the party can plead both in the alternative and elect at trial.

Rescission of Contract Cancellation Remedy

Rescission as a Contract Remedy in Florida

Steps

When to Choose

Election of Remedies

Related Terms

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