In yesteryears, business was concluded merely by a handshake. Two people would fulfill terms that were agreed upon just with the clasping of hands. Today, it appears that this simple gesture as a guarantee has become merely symbolic, for behind the handshake is contracts and written documents specifying the agreement in black and white. In searching for franchise opportunities, both parties must not rely on oral contracts. When investors buy a business, they consider the handshake as the start of a good business relation. However, are oral contracts still effective in conducting business today? From the legal point of view, the answer is yes; as long as the claimant can prove his case in court. Powerful people, from President Bill Clinton to the late web mogul Steve Jobs believed in the power of the handshake and oral agreements. In most instances, handshake deals are always binding, especially when there are witnesses to the agreement. A word of caution - do the agreement with lots of people around. In case, one has forged a contract through a handshake, what the person can do is to fulfill his side of the bargain. For once, the words are put into action; the other party will be willing to do his share. When one partner starts working on the agreement, he creates additional evidence that a deal was struck. The only problem with this strategy is that the other party may not fulfill his part. In a franchise business, potential investors would approach a company and they would talk about the deal. From the start, they discuss the business from all angles and terms are reached. Both sides close the deal by shaking hands in agreement to the oral contract. When entrepreneurs buy a business, they usually bring their lawyers and other business associates so there are people witnessing the finalization of the deal. A good follow-up of the transaction would be a simple thank you note as this is a gesture of goodwill and this can be a written evidence of the agreement. When cases are brought to court and a business owner does not have a witness to the oral contract, any correspondence between two parties is admissible in court, especially certified correspondence. This includes emails, faxes, memos, letters, and receipts. They are helpful materials to vouch a handshake or oral agreement. Oral contracts are useful for simple trading. However, in dealing with franchise opportunities or when investors buy a business, it is better to be on the safe side. A written contract is the best thing. Mike Moore is published on more than 300 websites. He writes success and business articles that cover topics from home based business, business start up, and franchise success . He is published on various website including http://www.franchiseharbor.com
Related Articles -
franchise opportunities, buy a business,
|