However, when it comes to big-ticket items, such as buying real estate, obtaining a mortgage or taking out insurance, no handshake contract applies. For these issues to be legal, a signed agreement is required. Many of the entrepreneurs I work with say they will only deal with someone they trust. They are quite happy to make a deal on a handshake and feel that written agreements somehow undermine the trust they have between them. The first thing we need is an offer, but it doesn`t matter who does it. The designer could make the opening offer by saying, “I`m going to design your new logo for $700.” Otherwise, you can make the opening offer by saying, “I have a budget of $700, can you design my new logo for that?” The devil may, however, be in the details. If the offer contained a reference to the conditions that claim that the upgrade would only include an annual license, you cannot insist that your upgrade include an indeterminate license. It is always advisable to read the terms and conditions by phone or have them emailed to you before you commit to a deal. Until then, all is well, and at this point, you and the designer may think that the agreement is done. But there is one last thing to look for, and that is security.
Both parties must be aware of the terms of the agreement they have reached. Imagine that you have a graphic designer to create a new logo for your company, to illustrate this point. You`ll meet and discuss what you`re looking for. You look through a portfolio of previous work and you like what you see. This is the designer for you so you can work out an agreement between you. Of course, all this is not necessary if both parties are happy and everyone lives up to their word. In a very simple agreement, there is little chance that anyone will end up proving anything in court. But if there is an argument that puts you in court, the burden is to provide evidence of the transaction. In order to impose an oral contract, it is necessary to decide which person will remember the agreed terms most. While an oral contract is legally binding, it is always preferable to have the terms of the contract written. So when you make a deal with a customer, just think of the handshake as symbolic. To make sure you have a legally binding agreement, make sure that all five essential elements are present and are on the security side, you should probably also use a written agreement.
However, there is a very important point. While you have a legally binding verbal agreement for the designer to offer the service, you won`t really own the logo when it`s ready. Not even if the designer says you`re going to do it and shake his hand to confirm! Unfortunately, there is no clear answer, because if a handshake is very symbolic, it means very little from a legal point of view. That`s why we have to put our hands aside and see what we have left. As a general rule, the law does not require that most agreements be reduced to writing to be enforceable. An oral contract or handshake agreement may be applicable in the same way as a written contract. Verbal or handshake agreements are subject to the same contractual principles as those applicable to written contracts. If the above conditions are met, you have a binding contract that can be written in all, partly or or partly orally and partly in writing. You can also have a contract that is entirely related to the behavior of the parties. If a person is disabled by age, is under pressure or does not understand what he or she accepts, the agreement may not be applicable.
