In international law, agreements between the governors of bodies of different States that do not have binding legal effect vis-à-vis States are called gentlemen`s agreements. At best, they have a binding effect based on good morals. In their effects, they go beyond political declarations of intent (= always reversible determinations of the political leadership) and codes of conduct (codes of conduct – non-binding recommendations of a certain model of behavior). [10] A classic gentlemen`s agreement is the HELSINKI Final Act of the CSCE. [11] The grounds for a gentlemen`s agreement may lie in a legally inadmissible object of the agreement, i.e. a violation of legal prohibitions. In antitrust law, gentlemen`s agreements are concerted practices of companies that are based on deliberate coordination but not on a legal obligation. Undertakings which hold a dominant position in their entirety conclude price agreements and thus exclude free market forces in the formation of prices to the detriment of the consumer. Concerted practices are prohibited by German and European competition law (§ 1 GWB and Art. 101 para. 1 TFEU).

[8] Another case may exist in particular among traders if the contracting parties consider that it is sufficient to reach a general agreement, the conception of which is left in detail to mutual commercial decency, without the parties having to acquire claims that can give rise to an action. [4] In the opinion of the Hanseatic Higher Regional Court, such non-binding agreements between traders are not uncommon. An agreement known as a gentlemen`s agreement is characterized by the fact that it is a commitment based on the goodwill and commercial decency of one or both parties, which, according to the intentions of the parties, should not give rise to any legal action. The debtor is expected to behave like a gentleman, which should not be legally enforceable. [9] Contracts concluded orally must be separated from the gentlemen`s agreement, which is in principle legally binding in all its parts, but whose content often cannot be proved in the event of a dispute. Here, the agreement reached by handshake has a social duty to fulfill. The international diamond trade is an example of this. The trade in precious stones worth millions of US dollars is often organized by handshake.

As soon as a contractual partner does not fulfill his obligations, he is ostracized and excluded within this elite group. Since the market is manageable and the participants are also socially closely related, this means the commercial and social end of the diamond industry for the person concerned. [12]. Results: 25. Correct: 25. Processing time: 95 ms. Translate text from any app or website with a single click Do you have any comments on our online dictionaries? Please confirm that you are human by checking the box.*. A translation is missing, did you notice an error or just want to congratulate us? Please complete the feedback form. The provision of the e-mail address is optional and is used in accordance with our data protection only to respond to your request.

A gentlemen`s agreement is a morally binding agreement, but not a legally binding one, i.e. a vague agreement. [1] The agreement is based on good faith[2] and, in most cases, mutual trust. [3] Statements are made without legal recourse, as the desired success must be achieved based on the partner`s word or through a commitment to decency. [4] [5] This is therefore an example of what is called soft law[6], which exists in both private and public law, particularly international law. Since the agreement does not create any legal obligation, only extra-legal sanctions are triggered in case of violation. [7] Possible extrajudicial sanctions are the withdrawal of existing relationships or their complete termination. .