You may feel comfortable with “You have my word” or “You can trust me” but let’s get one thing straight, that’s not a contract! That’s a few words that you want to believe are true especially when you are completing a transaction or hiring a person you feel you can trust. Handshake deals are fast becoming a thing of the past.
Handshake deals were originally designed to show that the two people agreeing upon a situation weren’t carrying weapons. Well, we don’t exactly live in the Wild West any-more! Yes, it would be optimal to just ‘shake on it’ and have deals go off without a hitch however, we all know that is just not how the world works. We hear people say, “But I trust him, I don’t need to have it in writing.”
Most of the time that handshake deals go wrong it has nothing to do with trust but rather human error. The human brain (unless you have a memory like no other) is not designed to memorise the ins and outs of detailed contracts word for word. We remember the gist of the conversation along with the details we choose to remember.
This is a whole new era where people can afford to have in place professional legal documents to protect themselves, their businesses and their families without sending themselves broke.
Written contracts and legal documents are not just for the sceptics that think a deal can go awry but rather for the individuals and companies that care about and trust the people they are partnering up with or hiring. By having all of the facts on paper both parties are able to move forward without the fear of future discrepancies (and yes, even if you trust that other person there will be discrepancies).
Oral contracts can be binding but are they worth the risk? No, not any-more and people are catching on!
Signing off!
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