Verbal Agreement Consideration

Verbal Agreement Consideration: What It Is and Why it Matters

A verbal agreement is a type of agreement that is made orally between two or more parties. Unlike written agreements, verbal agreements are not documented in writing but instead rely on the integrity and trustworthiness of the parties involved. But what happens when there is a dispute or disagreement over the terms of a verbal agreement? This is where verbal agreement consideration comes into play.

Verbal agreement consideration refers to the legal principle that a promise made verbally, in order to be enforceable, must be supported by some sort of consideration. Consideration is defined as something of value that is exchanged between the parties involved in the agreement. For example, if two parties agree verbally that one of them will provide a service to the other, the consideration may be payment in return for that service.

The importance of verbal agreement consideration lies in the fact that without it, verbal agreements may be difficult to enforce. In situations where there is a dispute over the terms of a verbal agreement, a court may require evidence of consideration in order to determine whether the agreement is enforceable.

One common example of verbal agreement consideration is in the case of employment contracts. If an employer and employee verbally agree to the terms of an employment agreement, the consideration may be the promise of a salary or other benefits in exchange for the employee’s work. Without such consideration, the verbal agreement may not be legally binding.

Verbal agreement consideration can also come into play in situations where one party has relied on the promises made in a verbal agreement to their detriment. In such cases, the party who relied on the agreement may argue that they suffered damages as a result of the other party’s breach of the agreement.

It is important to note, however, that most jurisdictions require that certain types of agreements be in writing in order to be enforceable. These agreements may include contracts for the sale of real estate, contracts that cannot be performed within one year, and agreements to pay someone else’s debt.

In conclusion, verbal agreement consideration is an important legal principle that helps ensure the enforceability of verbal agreements. By requiring consideration to be exchanged between the parties involved in a verbal agreement, courts are better able to determine whether the agreement is legally binding and enforceable. If you are involved in a verbal agreement, it is important to understand the concept of verbal agreement consideration and to ensure that consideration is exchanged in order to protect your legal interests.