Legal Question in Credit and Debt Law in Virginia

Re: Verbal Contract Limitations

No, there is no monetary limit. There are other limits. A verbal contract is not enforceable if it cannot be completed within one year. So, a one-year magazine subscription might not be valid.

However, the question with verbal contracts is proving that they exist -- proving that both sides actually agreed. For example, if one normally has a written contract, a verbal agreement to sign a written contract will probably be understood to NOT be a final agreement. It depends on what the parties actually intended. But that can be subject to conflicting interpretations. And it must be proven.

So, people say that a verbal contract is not worth the paper it is written on. That is a dangerous generalization, because if there are independent, impartial witnesses to the verbal agreement, the contract is definitely enforceable. But it is usually a problem to prove that the parties actually agreed, and intended it to be a contract.

NOTE, however, that there is an entirely different concept that most people don't understand, which is variously called "unjust enrichment" or "quasi-contract" or "contract implied by law" or "quantum meruit." If someone receives a benefit without paying for it, under circumstances in which the person clearly WANTED the benefit (requested it or expressed appreciation later) and under circumstances in which payment was clearly expected, the court will enforce payment of a reasonable value (not necessarily the asking price if the asking price is unusually high). This is a tricky process to enforce this, but there are ways to collect payment of a reasonable value for a benefit actually conferred. It happens all the time in Virginia courts. But it is quite balanced on both sides. There is no unfair advantage here. In fact, the idea is based upon justice and fairness, in part, so it will not be enforced to pull a fast one on anyone, in either direction.