Legal Question in Business Law in Virginia

Re: Oral Contract

Whether the contract exists and whether it is binding are two different issues. An valid oral contract is binding, whether or not one party denies it exists, if it is found by the court to exist. That is a question of proof. Oral contracts are valid and binding unless they fall within certain specific categories: mainly, contracts with respect to an interest in land; contracts that cannot be performed within one year; contracts for the sale of goods over $500; contracts to assume the debts of another; contracts in consideration of marriage. Most other contracts are valid and binding without a writing. The statute of limitations on an oral contract in Va. is 3 years from the date of breach, subject to certain grounds to toll that time.