Gentlemen agreement

Gentlemen Agreement definition:Basically, this type of agreement is made between two parties or more than two parties, it is not formal and it is also legally non-binding.

Typically,  it is oral,  though the parties may decide to make it a written agreement or unspoken agreement.The salient points about the gentlemen's agreement regulation include the following:It is between two parties or more than two partiesIt is informalIt is legally non-binding and as a result non-enforceable by the lawThough it may come in a written form,  it is typically oral It relies on the integrity of the parties involved for its fulfilment It is not the same as a legal agreement or contract Although not written or legally binding, its violation can impact trade relationships and other intended purposes negatively. 

Essence of the AgreementGentlemen’s agreement is dependent upon the honor or trust of those (two or more parties) involved for its fulfillment, andnot enforceable in anyway. Therefore it is different from a contract or legal agreement. It is particularly oral but may also be written, and may be seen as an aspect of an unspoken agreement via mutually beneficial etiquette.

The agreement was an informal one between the U.S.A and Japan Empire in the Gentlemen’s Agreement of 1907 --- requiring that the U.S. would refrain from imposing restrictions on the immigration of the Japanese, and Japan would stop further emigration to the U.S. The intention was to minimize tensions between the two parties --- regarded as powerful Pacific nations. Congress never ratified the agreement and the Immigration Act of 1924 ended it. It’s also important to note that

Gentlemen’s Agreement

is seen in the 1821 British Parliamentary Records. 

Violation of the Agreement can Affect Business Relationships NegativelyThough informal in nature, gentlemen agreement violation can negatively impact business relationships --- in the case where a party to the agreement breaches the promise or agreement. This agreement may be consummated by a handshake.

Understanding How it WorksUnlike legal agreement or a binding contract, if a party to the agreement breaks it, it does not come with any form of court-administered redress. This type of agreement has been commonly put in place in international trades and relations. Also, most industries have commonly adopted this form of agreement. 

Gentlemen agreement was particularly popular at the wake of the industrial age and lingered into the 1900s (the first half --- often, regulation lagged novel business practices. These kinds of agreements were adopted for prices control, and also to cut back competition in industries such as tobacco, water, iron, and steel. 

LimitationsIn the worst case scenario, gentlemen’s agreements could be adopted for the purpose of anti-competitive practices. Typical examples of such practices include trade quotas and price fixing.Since this form of agreement is implicit --- there is no written commitment as a contract that is legally binding, it could be engaged in creating and imposing illegal rules. 

The end result? In a number of cases, this form of agreement may promotemore costly and lower quality products for buyers or consumers. In the worst scenario, gentlemen agreement could lead to promotion of discriminatory practices. 

Another limitation of this agreement is that it lacks the kind of regulatory and legal protections that a formal contract offers, and as a result poses difficulty in terms of its enforcement. 

Application in Other CountriesThe United Kingdom has also adopted the gentlemen’s agreement law at one point or the other. For instance, On April 20 1995, in Paris, this type of agreement was signed between the United Kingdom and France --- to enable the return of people who did not gain entry into either state, within 24 hours. In the agreement, it was specified that the rule is not applicable to air travel. Also, in the agreement, there’s a specificiedterm that the Dublin Regulation (which at that time was a Convention) would supersede the terms. Consequently, the agreement is none-applicable to those who claim asylum. 

Conclusion Since gentlemen agreement has no legal or formal basis,  anyone or people intending to be part of such agreement for business relationships or other meaningful purposes should take heed. It is better to consult an attorney, so that you can make informed decisions about gentlemen’s agreement rules. 

Further Reading: ^"gentleman,n.".OEDOnline.December2013.OxfordUniversityPress.11February2014Gentlemen'sagreementofAndhraPradesh(1956)-WikiGentleman'sAgreement-GOV.UK-https://www.gov.uk›publications