Standard Forms of Contracts – Disc

In recent times, commercial activities have become highly complex, and the standard forms of contracts have been integrated and become the common practice in the daily transactions of most agreements. Ideally, there are several advantages associated with using standard forms of contracts. For instance, according to the American Institute of Architects, standard forms contract ensure nationwide consistency and predictability in contracting process. More specifically, predictability controls the expectations of both parties and minimizes future risks. Another value attached to standard forms contract is saving on transactional costs, which is the case with custom-made contracts. Standard form contracts also provide assurances and are more flexible to use. Notably, standard form contracts are used in a wide range of areas such as the construction field, the architectural field, and also by engineers.

Can a Simple Handshake Replace a Contract?

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Yes and No. A simple handshake can replace a contract if it contains all the parts of an agreement and cannot replace a handshake if it fails to meet all the requirements of a contract. More precisely,  a simple handshake can replace a contract if the all the parties are in agreement, something of value has been exchanged such as money, services, goods, or a promise to fulfill the terms of the agreement (Pakroo &  Stewart, 2018). Similarly, a simple handshake can fail to replace a contract if the elements of a valid contract are not outlined. Along with that, although some transactions can be complete with a handshake, for others, it can sufficiently become complicated in the long-term requiring a written contract. The reason is for the simple reason that in a handshake, the parties may not be able to outline the risks, dispute settlement, among other issues that may arise in future. 


.American Institute of Architects. (2017). The architecture student’s handbook of professional practice. (2017). John Wiley & Sons Inc.

Pakroo, P., &  Stewart, M. (2018). The small business start-up kit: A step-by-step legal guide. Berkeley, California: Nolo.

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