As a professional, I have come across many legal phrases and terms that may seem unfamiliar to the average person. One such term is the “handshake oral agreement.”
A handshake oral agreement is a type of verbal contract where two parties make a deal or come to an agreement without any written documentation. It is a common practice in certain industries and cultures, especially where mutual trust and respect are crucial.
While it may seem like a simple and effective way to make a deal, it is important to note that handshake oral agreements are not legally binding. In many cases, they may not hold up in court if either party decides to challenge the agreement.
The main reason for this is the lack of written documentation. Without a written contract, it can be challenging to prove what was agreed upon, the terms and conditions, and any other relevant details. This often leads to disputes and disagreements, which can be costly and time-consuming for both parties.
To avoid this, it is always advisable to have a written contract or agreement in place. A written document ensures that all parties involved are aware of the terms and conditions of the agreement. It also serves as a point of reference should any disputes arise in the future.
In some cases, however, a handshake oral agreement may be appropriate. For instance, if you are dealing with a long-time friend and business partner whom you trust implicitly, a handshake oral agreement may suffice. In this case, it is still advisable to document the agreement in writing and have both parties sign it.
In conclusion, while a handshake oral agreement may be a common practice in certain industries and cultures, it is important to remember that it is not legally binding. To avoid potential disputes and disagreements, it is always advisable to have a written contract or agreement in place. However, if you do decide to make a handshake oral agreement, make sure to document it in writing and have both parties sign it to avoid any misunderstandings or disputes in the future.