What Is a Handshake Deal?
A handshake deal is an informal agreement where parties promise to fulfill terms based on mutual trust, often sealed with a handshake. It is common in business, real estate, and personal transactions where relationships matter.
Are Handshake Deals Legally Binding?
Yes. Under contract law, a handshake deal can be legally binding if it includes offer, acceptance, consideration, and intent to be bound. However, proving terms in court is difficult without written evidence, making enforcement risky.
Risks and Best Practices
Risks include misunderstandings, memory gaps, and disputes over price or scope. To reduce risk, document key terms in a simple written memo or contract, even after a handshake. For more on contract basics, see Cornell Law Institute.
