Trust and respect are critical in the business world. Successful professionals and business leaders often take pride in upholding their promises to others and may take offense at any implication that they are not trustworthy and honorable.
It is relatively common practice for those intending to do business to reach a handshake deal, also known as an oral contract. They agree to specific arrangements face-to-face instead of committing all of the details to writing and signing a formal contract.
Unfortunately, not everyone deserves the trust and respect they demand in the business world, leading to disputes regarding an oral agreement. If a handshake deal falls apart, litigating to enforce the arrangement may be one of the only options available for those affected by the non-compliance or non-performance of the other party.
Are oral agreements enforceable?
People often assume that an oral agreement is not a binding or enforceable business arrangement. However, the courts generally recognize that a verbal agreement or promise carries the same legal authority as a written contract. The main difference is the ability to clearly prove the terms agreed upon by the parties.
Those dealing with a breach of a handshake arrangement can potentially ask the courts to enforce the agreement or award them damages. They could also request injunctions and scenarios where continued violations of the arrangement are likely or specific actions are needed to remedy the situation.
What evidence can help in a handshake agreement dispute?
While the arrangements may not have resulted in a signed contract, there may be other written records, including emails and text messages, that can validate the general expectations set by both parties. For example, those negotiating with vendors or construction firms may send messages back and forth regarding delivery timelines or material substitutions.
Any details committed to writing, even if not in a contract, can help support claims of a breach or validate the arrangement established between the parties. Witnesses who were present for the negotiations could also testify about what they heard and saw.
Finally, prior agreements between the two businesses may have served as the foundation for the handshake agreement. Highlighting the arrangements previously established by the parties embroiled in the dispute could help convince the courts that certain conduct violated the agreement or the efforts of one party did not meet the reasonable expectations of the other.
Working with an experienced business litigation attorney can help those facing a handshake agreement controversy take appropriate action. A lawsuit can potentially help to resolve disputes and address operational disruptions caused by noncompliance with an oral contract.