Define: Gentlemen’s Agreement

Gentlemen’s Agreement
Gentlemen’s Agreement
Quick Summary of Gentlemen’s Agreement

A Gentlemen’s Agreement is an informal and often unwritten agreement or understanding between parties, typically influential individuals or organisations, that is based on mutual trust and honour rather than legally binding contracts. These agreements are characterized by their reliance on social or moral obligations rather than legal enforcement. Gentlemen’s Agreements may cover a wide range of subjects, including business deals, diplomatic arrangements, or social arrangements. Despite lacking the legal weight of formal contracts, Gentlemen’s Agreements are often honoured out of respect for the parties involved and may be used to avoid potential conflicts, maintain discretion, or preserve diplomatic relations. However, they can also be criticized for lacking transparency and accountability, as they are not subject to legal scrutiny or oversight.

Full Definition Of Gentlemen’s Agreement

A gentleman’s agreement is an informal agreement between two or more parties. It may be written, oral, or simply understood as part of an unspoken agreement by convention or through mutually beneficial etiquette. The essence of a gentleman’s agreement is that it relies upon the honour of the parties for its fulfilment rather than being in any way enforceable. It is, therefore, distinct from a legal agreement or contract, which can be enforced if necessary. The phrase’s first recorded use was in 1888 in the Report of the Railway Accounting Officers published by the Association of American Railroads Accounting Division (page 337).

The term has come to sound distinctly old-fashioned because of its implicit assumption that both parties will be gentlemen (and the old-fashioned nature of that phrase). After interwar politics in Europe, the phrase has somewhat gained the connotation of an agreement easily broken.

In the United States, the term has also acquired negative connotations because it was used in various places in the early to mid-20th century to refer to unwritten discriminatory agreements relating to housing and employment of black and Jewish people. Because there was no written policy stating, for example, that black or Jewish families weren’t allowed to reside in a particular town, there were no grounds for legal action.

  • Professional wrestling often relies on a “handshake agreement” between the performer and the promoter in regard to money and work dates. This is usually used in independent promotions that don’t have the resources to draft legal agreements.
  • In Major League Baseball, there was a gentleman’s agreement that lasted for 60 years that barred African-Americans from Major League Baseball. This ban was finally broken by Jackie Robinson in 1947.
  • In association football, there is an unwritten rule that, in the case of an injury, if a player on the team opposite the injured player’s team has possession, he/she will put the ball out of play (thus “giving it up” to the opposition) so that the injured player may be treated. Upon resuming play, the injured player’s team is expected to return the ball to the opposing team, allowing both teams to resume play as normal. The rule, though not officially imposed, is normally followed dutifully. However, occasions where the rule is not observed have been known to lead to great animosity between the teams (and thus a more physical game). The most well-known example of this is a FIFA World Cup 2006 match between Portugal and the Netherlands.
  • In amateur (public) “e-sports” leagues or ladders, teams will often have agreements to allow or disallow players, rules, or equipment that would otherwise be allowed or prohibited (depending on what is being agreed to) from use. An example would be a team allowing their opponents to include a new team member in the match, even if the rules of the competition say they are only allowed to play after a set time period or not until their team has completed one match with the new player on the roster.
  • The City of Philadelphia maintained a gentleman’s agreement, enforced by long-time City Planning Director Edmund Bacon, regarding the height of all buildings within Centre City. The agreement maintained that no building be built higher than the shoe buckles on the statue of William Penn atop City Hall. This agreement was forever broken with the ground-breaking of One Liberty Place in 1985.

Industry

  • A now-defunct agreement between the major Japanese auto manufacturers to limit the maximum engine power of their cars to 280 PS (206 kW or 276 hp).
  • Boeing Commercial Aeroplanes signed exclusivity contracts with American Airlines, Continental Airlines, and Delta Air Lines in separate but nearly identical arrangements regarding the supply of airliners. The European Union forced the contracts to be voided when Boeing merged with McDonnell Douglas, but American Airlines, Delta, and Continental are continuing to adhere to the terms under gentleman’s agreements.
  • All major Japanese manufacturers voluntarily agreed to restrict the top speed of their motorcycles to 300 km/h (186 mph). The late 1990s saw “power wars” between various motorcycle manufacturers that culminated in the Suzuki GSX1300R Hayabusa, the first production motorcycle to exceed this speed in 1999, and the Kawasaki ZX-12R, designed to exceed 320 km/h (200 mph).
  • German carmakers put a 250 km/h (155 mph) speed limit on their automobiles, except sports cars.
  • Until the late 1990s, a gentleman’s agreement existed between UK spirit manufacturers not to advertise on television.
Gentlemen’s Agreement FAQ'S

A gentlemen’s agreement is an informal and unwritten agreement or understanding between parties based on mutual trust and honour, rather than being legally binding.

A gentlemen’s agreement lacks the formalities and legal enforceability of a contract. It relies on the integrity and trustworthiness of the parties involved to uphold their commitments.

Gentlemen’s agreements are generally not legally enforceable in court because they lack the formalities required for a binding contract, such as consideration and intention to create legal relations.

Gentlemen’s agreements are often used in situations where parties prefer a flexible and informal approach to resolve disputes or make arrangements without involving legal documentation or formal contracts.

Some examples of gentlemen’s agreements are handshake deals, agreements made over a meal, verbal agreements, and informal understandings between business partners, colleagues, or friends.

While gentlemen’s agreements do not have the legal force of a contract, breaking them can still damage relationships and erode trust between parties. It is generally considered unethical to violate the terms of a gentlemen’s agreement.

Gentlemen’s agreements rely on the integrity and honour of the parties involved to honour their commitments. However, if a party breaches the agreement, the recourse may be limited to informal remedies such as negotiation, mediation, or damage to the relationship.

Yes, gentlemen’s agreements are common in business settings, particularly in industries where trust and personal relationships play a significant role, such as in partnerships, collaborations, or negotiations.

While gentlemen’s agreements are typically informal and unwritten, parties may choose to document the terms of their agreement in writing for clarity or reference purposes. However, such documentation does not necessarily make the agreement legally binding.

Parties should consider formalising a gentlemen’s agreement into a legally binding contract when the stakes are high, there is a need for legal enforceability, or when parties anticipate potential disputes or disagreements in the future.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 9th April 2024.

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