UK: Law - How good is an oral contract?

A dispute over a verbal deal is hard to remedy.

'Let's shake on it', when used in a business context, can spell disaster for all involved: If one party intends a verbal deal to be legally binding and the other does not, a dispute is inevitable. It's a common misconception that, in the absence of a written agreement there is no contract. In fact, a contract requires only four elements: an offer, an acceptance, a consideration and an intention that this is legally binding - this could even be the handshake.