informal agreements

An informal agreement is an understanding between parties that isn't written down or legally binding, but still reflects a mutual intention to cooperate or fulfill certain expectations. These agreements rely on trust, communication, and good faith rather than formal contracts or legal enforceability. Common examples include verbal promises, handshake deals, or arrangements based on reputation. While they can often work smoothly, they lack the legal protections of formal contracts, so disputes can be harder to resolve if one party doesn't follow through. It's essential to ensure clear communication and good faith when entering into informal agreements.