Hand Agreement Meaning

Hand agreement, also known as handshake agreement or oral agreement, is a term used in legal and business contexts to describe an agreement that is made verbally or by a simple handshake or nod. This type of agreement may also be referred to as a gentlemen`s agreement.

While hand agreements may not be legally binding, they are often considered to be a moral and ethical commitment between two parties. The problem with these types of agreements is that they are not enforceable, and it can be difficult to prove that an agreement was made in the absence of written documentation.

In a business context, hand agreements may be used between two parties to establish terms for a particular project or deal. For example, two business partners may agree to split profits 50/50 for a new venture, but fail to put this agreement in writing.

Similarly, hand agreements may be made in a personal context as well. For instance, a homeowner may agree to pay a neighbor for yard work, but fail to establish a written agreement.

It is important to note that oral agreements, including hand agreements, may not be legally binding and may not hold up in court. Therefore, it is always recommended to put important agreements in writing to ensure that all parties are on the same page and that the agreement can be enforced if necessary.

In summary, hand agreements are a form of verbal agreement that can be made between two parties. While these types of agreements are not legally binding, they can be considered a moral and ethical commitment between the parties. However, to ensure the enforceability of an agreement, it is always best to put it in writing.