Final answer:
It is true that artists can work with agencies on both nonexclusive terms and through handshake agreements. Handshake agreements are informal and not written, but can still be legally binding. However, for clarity and to avoid disputes, written contracts are generally advised.
Step-by-step explanation:
It is indeed true that an artist can work with an agency on a nonexclusive basis or with a handshake agreement. While many professional relationships in the arts and entertainment industry are solidified with formal contracts, there are still instances where informal arrangements are made based on mutual trust and understanding. An agency might choose to work with an artist non-exclusively, allowing the artist the freedom to engage with other agencies or clients independently.
A handshake agreement is less formal and typically not in writing, but it is essential to note that these types of agreements can carry legal weight and are binding if it can be proven that there was mutual agreement and consideration. However, they can lead to potential complications, such as misunderstandings or disputes over the terms of the agreement since there is no written document to refer to. This is why many in the industry recommend formalizing relationships through written contracts.