Contracts

Question 1

Consideration in Florida

Answer 1

For consideration to exist, there must be either a benefit to the promisor or a detriment to the promisee.

• (a) A promisor “benefits” when the promisor acquires a legal right to which the promisor would not otherwise be entitled in exchange for a promise.
• (b) A promisee suffers a legal “detriment” when, in return for a promise, the promisee:
  
  • (1) takes on a new legal obligation, or
  • (2) surrenders a legal right that the promisee otherwise would have been entitled to exercise.

In other words, did the parties take on a legal obligation they otherwise did not have?

Question 2

Contracts with minors and Florida distinction

Answer 2

Until attaining the age of majority of 18, minors may form contracts, but their obligations are voidable. Disaffirmance is accomplished by words or deeds that objectively signify the election to avoid liability. Disaffirmance can occur prior to performance or even afterwards. Until the disaffirmance, the contract is binding.

However, when the contract is for necessaries (food, shelter, clothing) the other party has the right in quasi-contract to recover the reasonable value of the goods or services provided.

Florida follows the minority rule (not followed on the MBE) that a minor may not raise legal incapacity if he induced the other party to enter into the contract by fraudulently misrepresenting his age.

Question 3

Florida distinction for statute of frauds

Answer 3

In Florida, the following contracts must be in writing:

• (1) subscriptions for newspaper, periodical, or other like matter;
• (2) contracts to charge health care providers upon guarantee as to the result of any procedure performed by any licensed physician or dentist;
• (3) home solicitation sales;
• (4) home improvement contracts;
• (5) credit agreements; and
• (6) promises to pay a debt barred by the statute of limitations.

Question 4

Does Florida allow the winning party to recover attorney’s fees?

Answer 4

In Florida, parties are allowed to include prevailing party’s attorney’s fees provisions in a contract. If the contract is enforceable, so will a clause awarding attorney’s fees.