Oral agreements are difficult to prove or enforce in the absence of witnesses to the agreement. When such cases are contested, it is important that one party`s word be against the other. If your oral agreement was limited to repairing scratches that had been identified by the car owner at the time of the conclusion of the contract, you, provided that these scratches have been repaired, you have fulfilled your obligations under the contract and you are entitled to payment. You will be surprised to learn that oral agreements can be enforceable under Australian law. Third, a binding handshake agreement must have the element of “consideration”, i.e. price or value. This is the motivation to seal the deal, which is usually a change of currency. Alternatively, it can be providing services such as washing a car or even providing camaraderie. It`s not even rightly seen as an offer, but at best as a lead (and one that cools down quickly). While the investor cannot add conditions to a handshake agreement, it is possible to change the timeframe within which the offer must be accepted and the financing finalized. The purpose of these deadlines is to prevent situations in which the investor delays the acceptance of the handshake agreement or where the startup and the investor have a valid handshake agreement, but no time frame within which the investor must send his money. These deadlines avoid any ambiguity as to whether or not a valid handshake agreement exists and when the handshake agreement expires, and it should in any event expire if the investor does not finance after a certain period of time. Ten days is a reasonable time for both parties to complete the funding process, but they may decide on a different date, provided there is an agreement (in writing) on another timeframe.
A handshake agreement is not considered a legally binding contract unless a binding offer is made and accepted. Each side must give something valuable to the other, such as money, or even a promise, to seal the deal. If and until this process is completed, there will be no handshake agreement. It is therefore in the interest of investors to conclude the 4th step, because until they do, the start-up is not obliged to take its money. . . .