Nick7 said:
If there was a meeting of the minds in a verbal agreement, that is still an agreement.
A verbal agreement is only as good as each party's memory.
Besides, in this case, what indication is there that an actual meeting of the minds ever occured? He was clearly under the impression that they had a meeting of the minds, but I don't think that ever took place. But how will we ever know? We have nothing to look back upon; we can't go back and listen to the original conversation in which the subject of the partnership was discussed, and we don't have anything in writing to look back upon. A tape recording of the conversation would probably work just as well, but we don't have that either. All a court would have to work with are two people's less than perfectly accurate account (or more precisely, interpretation) of what was said.
If a man feels that insisting upon putting it down in writing sends a message to the other party that he doesn't trust them, then all he has to do is get out a piece of paper and a pen and start writing it all down right there on the spot, and say something to the effect that you're just writing all this down because you've got a terrible memory and you don't want to forget what your commitments are, and so that we don't overlook anything. Write everything down that both parties have agreed upon, not just your end of it. Then have them look it over and agree to it or make corrections. The added benefit of doing this is that if they are just blowing smoke up your *** and never intend to honor their commitments in the first place, you'll find out right away when they start to hem and haw over having it in writing.
Better slight offense now than lost money, lost time, and broken dreams later. Written agreements are a time-honored practice all over the world that wise men have used in one form or another since longer than anyone can trace in human history. No one should take offense at being asked to pledge to you in writing what they just pledged to you verbally, unless he or she has no intention of honoring his or her word, in which case asking them to put it in writing is a great way to find out.
There may be more heart in a handshake than a contract, but a contract can help avoid the bitterness and ill-will caused by misunderstanding and miscommunication, and in that way it can actually save your friendship.