Totally agree. As a former ``contracts guy`` I am appauled that they would do anything without a formal contract. Hand shakes don`t cut it any more. They may work to ``hold things in place`` till a formal contract is executed, but that`s it. Even a FAX of an executed contract is considered a ``hold`` until the original is received. And there`s much more to a contract (if you have a clue) than just the basic specs, quantities and delivery dates, and price. Many other clauses should be included in your standard boiler-plate Terms & Conditions (e.g., patent indemnification clause, and other CYA clauses). Scary stuff IMO.

And even a formal original written contract is not really enough, legally. There must be a ``meeting of the minds``, where all parties clearly understand what is being contracted. It`s difficult for me to believe we could win in litigation without some proof...like recorded telephone conversations and emails. Maybe they`ve got that....(hope so!).

SGE