[Alberta's Child]

Thus, while the club may not have a legal claim for money damages, it could most certainly sue in equity to have the membership contract canceled based upon a failure of consideration and fraud in the inducement.

Well, maybe I'm not understanding the nuances of the legal process here.

Wouldn't the club just cancel the membership WITHOUT filing a lawsuit ... and leave it up to the disgraced member to deal with his $300,000 loss however he sees fit? It would seem to me that any "claim" the club has would basically be pursued as an affirmative defense if the member tries to sue them for the $300,000.

[Labyrinthos]

In the real world, you are probably correct: The club would probably cancel the membership. But in my example, the member is a real jerk and insists on remaining a member because he paid the fees and dues.