Lawmaker Proposes New Rules for Contracts Involving Elderly and Disabled Parties

Questions of capacity frequently arise when someone who is elderly or disabled signs a contract that does not seem to be in their best interests. However, invalidating an agreement can be a difficult task, perhaps requiring evidence of events and conversations that happened years earlier. Now, there is an effort in the Florida Senate to pass legislation that might reduce the incidence of incapacity claims. 

The Elderly and Disabled Adult Contract Protection Act would establish several potential safeguards when someone who is at least 60 years old, or who qualifies as a disabled adult, enters into an agreement. Specific requirements include the following:

• All contract documents must be written in the language that the party uses most frequently, or in which they have the greatest literacy.
• A party creating a contract with someone defined as elderly or disabled within the law must conduct a comprehensive review of the document’s terms. Required elements might include the nature and duration of the obligation, total cost and payment schedule, cancellation or rescission rights, material risks and penalties.
• This review must be recorded on video and retained for five years in case allegations of duress or undue influence emerge.

Violations of this proposed rule could result in a fine, rescission of the contract or civil remedies.  

While this bill might never become law, contracting parties can take steps now to head off potential challenges later on. Affirming that someone is comfortable with the language being used for negotiations and agreement terms is essential. If any concern arises about someone’s ability to understand what is happening, you should seriously consider retaining a translator.

Likewise, precautions can also be taken for situations where someone might not be cognizant of what they are doing for other reasons, such as age and disability. A standardized “comprehensive review” checklist with disclosure items similar to those in the bill can avert potential disputes later on. You might wish to establish video-recording procedures that clearly demonstrate that you received informed consent from a contracting party. Even existing arrangements might be updated so that someone cannot claim that they were diminished at the time a particular contract was signed. 

Working with a thorough attorney can minimize the likelihood of contract disputes. H. Clay Parker, Esq. The Florida Lawyer assists clients statewide with the drafting, review, negotiation and enforcement of all types of agreements. Please call [ln::phone] or contact us online for a consultation. Our office is in Orlando.