The same as with this handshake deal - it formalizes a level of commitment that the community recognizes as one that you should not back out of under normal cir

The same as with this handshake deal - it formalizes a level of commitment that the community recognizes as one that you should not back out of under normal circumstances (e.g. if the other side is being perfectly reasonable). You don't want the handshake deal to force people to invest no matter how unreasonable the company ends up being in the paperwork they send over.