An Gentlemen`s Agreement

Despite its informal nature, the breach of a gentlemen`s agreement could have a negative impact on trade relations if a party decides to break its promise. A gentlemen`s agreement can also be called a “gentleman`s agreement” and can be concluded by a handshake or not. Gentlemen`s agreements between industry and the U.S. government were commonplace in the 1800s and early 1900s. The Bureau of Corporations, a predecessor of the Federal Trade Commission, was established in 1903 to investigate monopolistic practices. Enabling treaties that establish an international organization may leave certain procedural or voting issues unresolved. Instead of modifying the formal document, which is normally a difficult task, an informal working agreement will develop to solve a particular problem. As long as the consensus respects the informal agreement, there is no need to incorporate it into a legal document. .

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