The reason you don`t own the logo is because the transfer of intellectual property rights is one of the few specific situations in which an oral agreement is not binding, even if the five essential elements are in place. (Other examples for which a contract must be entered into in writing are when you buy or sell shares in a company or give a guarantee.) In a process-friendly society, clear agreements often prevent small differences of opinion from becoming important. Unless you have time and money for an expanded pursuit, take the time in advance to spell out the details. Your lawyer can anticipate scenarios that you may not have considered. If the designer made the offer and you answered with “OK, 700 euros is, but are you going to make my business cards as part of the agreement?”, that would not be the hypothesis. This would be a counter-offer since you changed the terms of the initial offer. The ball is then back to the designer, either accept your offer or make another counter-offer, and this back and forth will continue until there are no more negotiations. You think if you shake hands to seal a deal, it wouldn`t be worth the paper it was written on. Not like that. Australian law allows a legally binding contract to be made if it is written or oral. A handshake through a deal can be legally binding and you can be held liable if you violate the agreement. Contrary to popular belief, you do not need to sign a written document to have a legally binding contract. Gentlemen`s agreements, handshake agreements and verbal agreements can all be legally binding treaties, provided they meet the following requirements: However, if I advise in a contractual dispute, the same contractors will want to know how binding a handshake is.
Depending on the side of the argument they find themselves, they might want to keep the other party in the agreement, or look for a way out. Until then, all is well, and at this point, you and the designer may think that the agreement is done. But there is one last thing to look for, and that is security. Both parties must be aware of the terms of the agreement they have reached. The verbal agreement does not apply to certain legal issues, such as a mortgage, the purchase of real estate or the insurance contract. A signed contract is required for these large ticketing business. But if we go back on our example, except that it takes a long time, there is no reason why you and the designer could not have sat down and talked through all the details to make sure there was enough security to conclude a legally binding oral agreement. Many of the entrepreneurs I work with say they will only deal with someone they trust. They are quite happy to make a deal on a handshake and feel that written agreements somehow undermine the trust they have between them. I know I have it.
In my first days of work, I had a handshake agreement with a man I had hired. He agreed not to look for another job for two years. After a year, what he thought was a better offer came along, and he was gone. He said he remembered that we only agreed for a year. How could I prove him wrong? I couldn`t do it. For a handshake agreement to be considered binding, each person must know exactly what they accept and what is required of everyone to conclude the agreement. The next essential element is consideration, that is, payment. The consideration for this agreement is $700. Even if the payment does not take place until after the completion of the work, both parties know what the consideration is and have accepted it. You will be surprised to learn that oral agreements may apply under Australian law.