A gentlemen`s agreement is a term that refers to an unofficial and informal agreement between two parties that are not legally binding. It is typically an agreement that is based on mutual trust and respect between both parties involved. It is important to note that it is not a written agreement and is often made verbally, through a handshake or a nod of the head.
Here are the main features of a gentlemen`s agreement:
1. Mutual trust and respect: As mentioned earlier, a gentlemen`s agreement is based on mutual trust and respect between both parties involved. The parties must rely on each other to adhere to the terms of the agreement.
2. Non-legally binding: A gentlemen`s agreement is not enforceable by law. It is an informal agreement that depends on the goodwill and honesty of both parties. Any breach of the agreement cannot be resolved in court.
3. Flexibility: A gentlemen`s agreement can be easily modified or amended. Since there is no legal framework for the agreement, changes can be made without consulting a lawyer or going through a formal process.
4. Confidentiality: A gentlemen`s agreement is often kept confidential between the parties involved. This is because it is not legally binding and may contain sensitive information that they do not want to share with others.
5. Verbal or non-verbal: A gentlemen`s agreement can be made verbally or through a non-verbal gesture like a handshake or a nod of the head. It can also be documented in writing, but this is not necessary for the agreement to be valid.
6. Creates goodwill: A gentlemen`s agreement helps to create goodwill and trust between the parties involved. It can also help to strengthen a business relationship or partnership.
In conclusion, a gentlemen`s agreement is an informal arrangement that relies on mutual trust and respect between both parties. It is not legally binding and depends on the goodwill and honesty of both parties to adhere to the terms of the agreement. While it can be easily modified or amended, it is important that all parties involved understand and respect the terms of the agreement.