In Florida, contracts are legally binding, but not every contract is enforceable. If one party makes a false statement that leads the other party to enter the contract, you can void the agreement. Misrepresentation happens when one party provides false information—intentionally or unintentionally—that influences the other party’s decision to sign. Let’s explore how you can void a contract in Florida due to misrepresentation.
What is misrepresentation in a contract?
Misrepresentation occurs when one party makes a false statement during contract negotiations. The false statement must involve something material—something important enough to affect the decision to enter the contract. There are three types of misrepresentation: fraudulent, negligent, and innocent. Fraudulent misrepresentation happens when a party knowingly makes a false statement to deceive the other. Negligent misrepresentation occurs when a party makes a false statement without taking proper care to ensure its truth. Innocent misrepresentation happens when a party makes a false statement without knowing it is untrue.
How can misrepresentation lead to voiding a contract in Florida?
Florida law lets you void a contract if you can prove misrepresentation occurred. The false statement must be material, meaning it must significantly influence your decision to enter the contract. If the misrepresentation was intentional (fraudulent) or made carelessly (negligent), you can rescind the contract. Rescinding the contract means you can undo the agreement and return to the position you were in before signing it.
What steps should you take to void a contract based on misrepresentation?
To void a contract based on misrepresentation, you need to prove that the false statement was material and influenced your decision. You must act promptly after discovering the falsehood. Typically, you will need to notify the other party of your intent to rescind the contract and return any benefits you received under the agreement. If the misrepresentation was fraudulent or negligent, you may also seek damages.
Make sure to keep detailed records, including communications and the contract itself, to back up your claim.