A gentleman’s agreement is an informal, unwritten agreement that relies on trust and integrity rather than legal enforcement. It can be unstated, oral, or written, but is not legally binding. While it can facilitate a formal agreement, it is not recommended for important matters as it offers no legal recourse if violated.
A gentleman’s agreement, more commonly “gentleman’s agreement” since presumably all parties involved are gentlemen, is an unwritten agreement. It is not legally binding and cannot be enforced in a court of law. Instead, the parties trust in the integrity and honor of the participants in the agreement. This can sometimes backfire, and individuals are strongly encouraged to secure a legally binding agreement rather than an informal agreement for their protection, as well as the protection of the other party.
The terms of a gentleman’s agreement may be unstated, oral, or written. Writing an agreement does not necessarily make it legally binding, as agreements must meet certain terms to be considered legally binding contracts. The parties to the agreement reach a mutually acceptable agreement and agree to trust each other to meet the terms. Such deals were historically sealed with a handshake, a concept referenced when people “agree to shake off” when deciding on the terms of a deal.
This term dates back to 1800, when it was first used in the railroad industry in the United States, although the concept itself is much older. Informal agreements have determined everything from national sovereignty to ensuring that certain people get jobs. Historically, the gentleman’s agreement has been criticized as a means of exclusion, and such arrangements were sometimes used grossly. An example could be seen in some regions of the United States historically when real estate agents informally agreed to discourage people of color from buying homes in white neighborhoods. By not overtly stating or codifying the practice, real estate agents avoided running afoul of anti-discrimination laws.
In some cases, a gentleman’s agreement can be a tool to facilitate a formal agreement at a later date or to expedite procedures. International organizations and other large groups can reach informal agreements while details are being obtained. Taking the time to write and code the agreement can be a waste if everyone agrees; for example, people in a meeting might agree that people should not be allowed to speak for more than 10 minutes at a time to keep the meeting within a reasonable time limit.
The problem with a gentleman’s agreement is that it is unenforceable, and if violated, the aggrieved party has no legal recourse. For this reason, even when reaching an agreement between friends, it is recommended to obtain a legally binding contract. For example, if someone agrees to rent a house to a friend, a standard lease could be used to generate a basic agreement to protect the friends in the event of a problem.
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