March 4, 2026 | 8

Are handshake agreements legally binding?

Yes, sometimes.

The purpose of a legally binding promise (AKA a contract) is to be able to enforce the promise or be compensated if the other person breaks their word.

How do you enforce an oral contract?

Enforcing a contract that was never written down is the same as enforcing any other contract but with the added burden of proving the contract exists in the first place. That's hard to do if it's just your word against the other person's. You must provide evidence that the person made the promise and intended to be bound by it. You'll also need evidence to show the terms of the deal.

What evidence can be used to prove an oral contract exists?

To prove the existence and terms of an oral contract, you'll need some combination of notes, emails, written confirmations/ follow-up, or other records. If a third-party witnessed the handshake agreement, they may testify to that. It's especially useful if the other party admits under oath that they made the handshake agreement.

When are oral contracts flat-out unenforceable?

Sometimes (a lot of the time), a written contract is required by a doctrine known as the statute of frauds. A contract must be in writing when the contract:

• is for the sale of goods worth more than $500
• will take more than 1 year to complete
• is for the sale or transfer of land/ real estate
• is made in consideration of marriage, like a prenup
• involves a promise to pay someone else's debts

Handshake agreements that deal with the above situations are not enforceable. They must be in writing.

As always, there are exceptions.

Are there exceptions?

Yes! There are significant exceptions when it comes to deals between merchants and when the handshake agreement is for ordering custom-made goods.

To learn more, check out the blog post on this topic.

Should I give up on handshake agreements?

When you want to protect yourself and be able to enforce a promise if the other person drops the ball, you should 100% have a written contract. That being said, trust and integrity still mean something to a lot of us. Handshake agreements are great in low-risk situations and now you know the best way to strengthen an oral contract: documentation!