https://youtu.be/Lc9JgenjaGQ In business, understanding the nature of agreements is crucial. Whether you’re a start-up or a small business, contracts are at the heart of every transaction. But can a handshake suffice as a contract? At Pop Up World, where we empower start-ups and SMEs to grow, understanding binding agreements and non-binding agreements can help you make informed choices for your business ventures. Let’s delve into the details of handshake deals, what makes an agreement binding, and how you can ensure your business arrangements are solid and secure. The Handshake Deal: Is It a Binding Agreement? Imagine you’re in a meeting, and after some negotiation, you shake hands with another party to seal the deal. But is this handshake enough to constitute a binding agreement? The answer is more complex than a simple yes or no. Legally speaking, a handshake can be a binding contract under certain conditions. For an agreement to be binding, it generally needs to meet the following criteria: Offer and Acceptance: One party must make an offer, and the other must accept it. Intention to Create Legal Relations: Both parties must intend for the agreement to have legal consequences. Consideration: There must be something of value exchanged, such as goods, services, or money. In the UK, handshake agreements can hold legal weight, provided these conditions are met. However, without written documentation, enforcing such agreements can be challenging, especially if disputes arise. For start-ups and small businesses, a handshake might feel symbolic, but having written proof of the terms agreed upon is far more secure. What Is a Binding Agreement? A binding agreement is a contract that is legally enforceable by law. When parties enter a binding agreement, they’re obligated to fulfill their responsibilities as per the terms agreed upon. Such agreements can be verbal or written, though written contracts are generally easier to enforce in court due to clear evidence of the term