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The Other Side of Hand-Shake Deals

In a prior post I said how The Profit's Marcus Lemonis should probably stop with the hand-shake deals because the risk is that hand-shake deals (or "oral contracts") may not be enforceable as contracts; you usually need the agreement in writing. (Although oral contracts can be enforceable--it's complicated.)

So it makes you wonder. Why would Lemonis do his hand-shake deals knowing they may not be enforceable agreements? He's no dope. He's a shrewd businessman. Lee Iacocca was his mentor.

Is it a gimmick for the show? Maybe, but the consequences can be an unenforceable agreement and an "expensive lawsuit" (in his words), as in A. Stein Meats.

Lemonis says he does hand-shake deals as a kind of old-school, my word is my bond, kind of thing.

I'm not so sure. The other side of his hand-shake agreements is that they give Lemonis a backdoor out of a deal that looks like it's not so good after all, e.g. the Swanson's Fish Market episode. As in "You think I'm breaching our contract? Try and enforce that agreement in court!"

Just speculation on my part.

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