Is a handshake sufficient for concluding a contract?
August 28, 2022 | 45,00 EUR | answered by Gertrud Knorr
Dear lawyer,
My name is Piotr Endres and I have a question regarding contract law. Recently, I met with a potential business partner to discuss a potential collaboration. At the end of our meeting, we agreed on the terms of our future business and as a sign of agreement, we shook hands.
Now I am wondering if this handshake can be considered as a valid contract. I am concerned that there may be misunderstandings as we did not put anything in writing. Can a handshake be legally binding? Or should I draft a written contract to ensure that all conditions are clearly and unequivocally stated?
I would like to know if I am on the safe side in this situation or if I should take further steps to protect my interests. Can you provide me with possible solutions for this situation and recommend how I should proceed to be legally protected?
Thank you in advance for your help and advice.
Best regards,
Piotr Endres
Dear Mr. Endres,
Thank you for your inquiry regarding contract law. It is understandable that you are considering whether a handshake can be considered a sufficient conclusion of a contract and whether it is advisable to draft a written contract to avoid potential misunderstandings.
Generally, a contract is also valid and binding orally, as long as the essential elements of the contract (such as performance, consideration, parties) are clearly and unambiguously agreed upon. A handshake can therefore be seen as the conclusion of an oral contract, as long as both parties are in agreement and intend to make legally binding agreements.
However, an oral contract also carries certain risks, as disputes may arise later on regarding the exact terms of the agreement. A written contract provides more security, as all conditions can be documented in writing, thus avoiding misunderstandings and preventing disputes.
In your situation, it would be advisable to draft a written contract that comprehensively captures all agreed upon conditions and terms. This not only protects you but also your business partner. A well-drafted contract can prevent potential conflicts and establish the cooperation on a solid legal basis.
I am happy to assist you in drafting a written contract and help you consider all relevant aspects and details. Please do not hesitate to contact me to schedule a consultation and discuss your individual situation.
I hope this information is helpful to you and I am available to answer any further questions you may have.
Sincerely,
Gertrud Knorr
Attorney at Law
