Have a Handshake Agreement
As a professional in the business world, it`s common to come across the idea of having a “handshake agreement”. This term refers to an informal agreement between two parties that is sealed with a simple handshake, rather than a written contract. While it may seem like a simple and easy solution, there are some things to consider before entering into a handshake agreement.
One of the major drawbacks of a handshake agreement is the lack of documentation. Unlike a written contract, there is no physical proof of what was agreed upon. This can lead to misunderstandings or disagreements down the road. Additionally, without a written contract, it can be difficult to enforce the terms of the agreement in court if necessary.
Another issue with handshake agreements is the potential for miscommunication. When you enter into a verbal agreement, it`s easy to assume that both parties understand the terms the same way. However, there`s always the possibility that one party interprets the agreement differently than the other. This can lead to confusion and frustration, which can ultimately damage the business relationship.
Despite these drawbacks, there are some situations where a handshake agreement may be appropriate. For example, if you`re working with someone you trust implicitly, and the agreement is relatively simple and straightforward, a handshake agreement can be an efficient and effective solution.
If you do decide to enter into a handshake agreement, it`s important to set clear expectations and terms from the outset. Make sure both parties understand and agree to the terms of the agreement, and consider drafting a written summary of the agreement that both parties can sign. This can help to prevent misunderstandings down the road.
Ultimately, while a handshake agreement may seem like an easy solution, it`s important to carefully consider the potential drawbacks and take steps to mitigate any risks. By being clear and upfront about expectations, and taking steps to document the agreement, you can help to ensure a successful and productive business relationship.