A handshake deal refers to an informal verbal agreement between two parties, typically made based on mutual trust rather than a signed contract. In sales, it implies that both the buyer and seller have agreed on terms, but haven’t formalized the agreement in writing yet.

Handshake deals often occur in early-stage conversations, long-term relationships, or fast-moving situations where both sides want to move quickly. However, they carry risk, as the agreement isn’t legally binding and may lead to misunderstandings or changes in commitment.