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Breach of Contract –


[1] Elements and Case Citations

(1) Plaintiff and defendant entered a valid contract;

(2) Defendant committed a material breach of the contract; and

(3) Plaintiff suffered damages caused by defendant’s breach.

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Florida State Courts

First District: Knowles v. C.I.T. Corp., 346 So. 2d 1042, 1043 (Fla. 1st DCA 1977)

Third District: Collections, USA, Inc. v. City of Homestead, 816 So.2d 1225, 1227, n.2 (Fla. 3d DCA 2002)

Fourth District: Merin Hunter Codman, Inc. V. Wackenhut Corrections Corp., 941 So.2d 396, 398 (4th DCA 2006) quoting J.J. Gumberg Co. v. Janis Services, Inc., 847 So.2d 1048, 1049 (Fla. 4th DCA 2003).

Fifth District: Abbot Laboratories, Inc. v. General Elec. Capital, 765 So. 2d 737, 740 (Fla. 5th DCA 2000)

Florida Federal Courts

Eleventh Circuit: Beck v. Lazard Freres & Co., LLC, 175 F.3d 913, 914 (11th Cir. 1999)

Southern District: Murray v. Playmaker Servs., LLC, 512 F. Supp. 2d 1273, 1279 (S.D. Fla. 2007)

Middle District: Bray & Gillespie Mgmt. LLC v. Lexington Ins. Co., 527 F. Supp. 2d 1355, 1365 (M.D. Fla. 2007)

Florida Statutes

§ 86.031, Fla. Stat. (declaratory judgments; construction of contract before or after breach)

References

Restatement (First) of CONTRACTS § 312 (1982)

[2] Defenses to Claim for Breach of Contract

(1) Fla. R. Civ. P. 1.110(d) (pleading affirmative defenses), and other standard defenses See § 60.

(2) Statute of Limitations: § 95.11(2)(b), Fla. Stat. (five years).

(3) Defendant’s obligation to perform under the contract may be excused under the doctrine of commercial frustration when the purposes of the contract, or those which defendant bargained for, have become ``frustrated because of the failure of consideration, or impossibility of performance by the other party’’. See Home Design Center Joint Venture v. County Appliances of Naples, Inc., 563 So. 2d 767, 770 (Fla. 2d DCA 1990).

(4) Duress requires severe pressure or other influence that destroys the defendant’s free will, and forces the defendant to do an act or enter into a contract. See Franklin v. Wallack, 576 So. 2d 1371, 1373 (Fla. 5th DCA 1991) (J. Sharp, dissenting); see also Restatement (Second) of Contracts §§ 174-177 (1981).

(5) Statute of Frauds: Fla. R. Civ. P. 1.110(d); see also §§ 672.201, 672.206 (Florida U.C.C.), 678.319 (sale of securities), 680.201 (leasing), 725.201 (payment of another’s debt), Fla. Stat; Restatement (Second) of Contracts §§ 110, 130 (1981).

(6) The implied covenant of good faith and fair dealing requires that each party act consistently with, and take no actions to frustrate, the contract’s purpose, with the exception that Florida courts will not employ the covenant to negate a contract’s express terms. Restatement (Second) of Contracts § 205 (1981).

(7) Impossibility of performance is a defense to breach of contract when the factual situation renders one party’s performance under the contract impossible. See Home Design Center Joint Venture v. County Appliances of Naples, Inc., 563 So. 2d 767, 770 (Fla. 2d DCA 1990).

(8) Contract enforcement is unconscionable when the contractual term was unreasonable and unfair (substantive unconscionability) at the time the parties entered the contract (procedural unconscionability). See Kohl v. Bay Colony Club Condominium, Inc., 398 So. 2d 865, 868 (Fla. 4th DCA 1981), rev. denied, 408 So. 2d 1094 (Fla. 1981); see also § 672.302, Fla. Stat.; Restatement (Second) of Contracts § 208 (1981).

(9) Mistake:

(a) Mutual mistake, which renders a contract voidable when both parties, at the time of making a contract, were mistaken as to a basic assumption of the contract that has a material effect on the parties’ performances under the contract. Continental Assur. Co. v. Carroll, 485 So. 2d 406, 409 n.2 (Fla. 1986); see also Restatement (Second) of Contracts § 152 (1981); and

(b) Unilateral mistake, which allows a party to void a contract when the party, at the time of making a contract, was mistaken as to a basic assumption of the contract that has a material effect of the parties’ performances which is adverse to the mistaken party. Orkin Exterminating Co., Inc. v. Palm Beach Hotel Condominium Assoc., Inc., 454 So. 2d 697, 699 (Fla. 4th DCA 1984); see also Restatement (Second) of Contracts § 153 (1981).

(10) Repudiation: An obligee sued for breach of contract may assert the defense of repudiation when the obligor first repudiated his or her duty of performance. See Southern Crane Rentals, Inc. v. City of Gainesville, 429 So. 2d 771, 773 (Fla. 1st DCA 1983); see also Restatement (Second) of Contracts §§ 250-257 (1981).

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