src: massrealestatelawblog.com
A handshake deal is a verbal commitment to a transaction. For the deal or agreement to become binding: one must witness the deal take place, have a follow up email or some form of communication to the other party, have any correspondence or other documentation that could be used as "evidence" in court or other legal needs, and/or begin to perform to the agreements in the deal.
Video Handshake deal
Examples
Example 1:
- A owns a business, as does B.
- A wishes to make a merger with B.
- B agrees to the business merger by handshake deal.
- Six months later, A wishes to begin the merger, but B declines.
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- B does not have to accept because the deal was not binding.
Example 2:
- A owns a business, as does B.
- A wishes to make merger with B.
- B agrees to the business merger by handshake deal.
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- At the time C sees the Deal occur.
- Six months later, A wishes to begin the merger, but B declines
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- Since C saw the handshake deal occur, it was binding and B must perform the merger.
Example 3:
- While in a bar together, A and B want to begin a business.
- On a napkin, they agree to share profits, 50/50.
- Some time later, A and B make a very successful business.
- A finds out that he was receiving 40% of profits while B was receiving 60% of profits.
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- Since the deal was also written on a napkin, it became binding.
- In court, it was decided that A must be reimbursed by B for the total money A has been cheated out of.
Maps Handshake deal
See also
- Oral contract
src: c8.alamy.com
References
Source of the article : Wikipedia
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