A gentlemen`s agreement is a term that refers to an unspoken and informal understanding between two parties that is based solely on trust and honor. It is an agreement that is made between two people, and it is not backed up by a written contract or legal document.
The term ”gentlemen`s agreement” is often used in business or international trade negotiations, where two or more parties agree to a course of action that is not legally binding but is based on mutual trust and respect. This type of agreement is often used to avoid disputes and to maintain a positive relationship between the involved parties.
The concept of a gentlemen`s agreement dates back to the 19th century when men would make agreements with each other based on their social standing and reputation. These agreements were often used to resolve disputes or to maintain cordial relationships between individuals.
In modern times, gentlemen`s agreements are often used in industries such as finance, technology, and entertainment. For example, two tech companies may agree not to hire each other`s employees, or two movie studios may agree not to release competing films on the same day.
While gentlemen`s agreements may be informal, they are not completely without consequence. If one party breaches the agreement, it can lead to damaged relationships and a loss of trust. This can have significant consequences, particularly in the business world where reputation and trust are paramount.
In conclusion, a gentlemen`s agreement is a non-legally binding agreement that is based on trust and honor. Although it may not be backed up by a written contract, it is still a valuable tool in maintaining positive relationships and avoiding disputes in business and other settings.