Detectives in Volusia County recently issued an arrest warrant after more than 100 Seabreeze High School students and chaperones lost nearly $400,000 in a canceled class trip. The group had signed up with a Massachusetts travel agency for a nine-day journey through Italy and Greece, paying more than $3,500 each for airfare, lodging, and excursions.
Just a month before departure, the agency abruptly shut down, emailing families that there was no money left for refunds. Investigators later discovered the company was also being sued by other organizations for similar allegations. The agency’s owner now faces charges of grand theft and organized fraud.
This case is a painful reminder of how devastating fraud in contracts can be. When people enter into agreements based on false promises, the results can be financially and emotionally devastating.
Attorney Jennifer Englert of The Orlando Law Group explains:
“Fraud in contracts is a serious issue in Florida law, often arising when one party uses deception or misrepresentation to induce another party into an agreement. Because contracts are built on trust and mutual consent, fraud undermines the very foundation of enforceable agreements. Florida courts treat fraud claims with significant weight, but proving fraud requires careful attention to detail.”
What Constitutes Fraud in a Contract Under Florida Law?
Under Florida law, fraud occurs when one party makes a false statement of a material fact, knowing it is false (or acting with reckless disregard for the truth), intending for the other party to rely on it, and the other party suffers damages as a result.
To establish fraud in the inducement of a contract, a plaintiff must generally prove:
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A false statement about a material fact.
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Knowledge that the statement was false when made.
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Intent to induce the other party to rely on the misrepresentation.
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Actual and justifiable reliance by the other party.
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Damages suffered as a result.
Common Examples of Fraud in Contracts
Fraud can appear in many forms. Some of the most common examples include:
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Misrepresentation of facts – A seller lies about the condition of property or assets.
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Concealment – Withholding important information, such as known defects in real estate.
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False promises – Entering into a contract with no intent to perform.
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Falsified documents – Altered contracts, forged signatures, or fraudulent records.
Legal Remedies for Victims of Fraud in Florida
Victims of fraud are not without recourse. Depending on the circumstances, remedies may include:
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Rescission – Canceling the contract and restoring both parties to their pre-contract positions.
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Damages – Compensation for financial losses caused by the fraud.
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Punitive damages – In cases of egregious misconduct, courts may award additional damages to punish and deter fraudulent behavior.
Fraud vs. Breach of Contract
It is important to distinguish between breach of contract and fraud. A breach occurs when one party fails to uphold their contractual obligations. Fraud, however, requires intentional deceit at the time the agreement was made. Not every broken promise rises to the level of fraud, courts look closely at whether fraudulent intent existed when the contract was formed.
Preventing Fraud in Contracts
Whether you are a parent, nonprofit, or business, there are proactive steps you can take to reduce your risk of fraud:
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Conduct thorough due diligence before entering agreements.
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Include warranties and representations in contracts.
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Require disclosures and verify all information.
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Consult an experienced Florida attorney to draft or review contracts.
Final Word
The Seabreeze High School trip case demonstrates how fraud can devastate families, communities, and organizations. Fraud in contracts is not only a civil wrong but may also rise to a criminal offense in Florida, depending on the severity and context.
Because the legal standards for proving fraud are strict, anyone facing a potential fraud claim, whether as a victim or accused party, should seek qualified legal counsel. Understanding the elements of fraud, and taking steps to prevent it, helps protect both businesses and individuals across Florida.
The attorneys at The Orlando Law Group help with all types of legal issues for businesses and individuals in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.
If you have questions about fraud in contracts or other legal matters, call us at 407-512-4394 or fill out our online contact form to schedule a consultation.
Last Updated on October 2, 2025 by The Orlando Law Group
