The gentlemen`s agreement should be separated from the oral treaties, which in principle are legally binding in all their parts, but whose content cannot often be proven in the event of a dispute. In this respect, the agreement reached by a handshake is a social duty of its realization. The international diamond trade is an example. The multi-million dollar trade in gemstones is often given by a handshake. As soon as a contractor fails to meet his obligations, he will be ostracized and excluded within this elitist group. Since the market is manageable and the participants are closely linked on a social level, this means for the individual the end of business and society in the diamond sector. [12] In particular, another case may be reserved for traders if the contracting parties believe that it is sufficient to reach a general agreement whose organization is entrusted in detail to the commercial decency of both parties, without the parties acquiring questionable rights. [4] According to the Hanseatischen Oberlandesgericht such non-binding agreements between traders are not uncommon. An agreement called the Gentlemen`s Agreement is characterized by the fact that it is a commitment of goodwill and commercial decency on the part of one or both parties which, according to the wishes of the parties, should not create claims.

The debtor should behave as a gentleman who should not be legally binding. [9] The reasons for a gentlemen`s agreement may be motivated by a legally prohibited purpose of the agreement, i.e. a violation of legal prohibitions. The gentlemen`s agreement refers to concerted practices on the part of companies that are based on deliberate coordination, but not on legal ties. Companies that, as a whole, have a dominant position in the market, enter into price agreements and thus exclude market forces for price formation to the detriment of the consumer. Concerted practices are prohibited by German and European rules on cartels and abuse of dominant position (Article 101, paragraph 1, TFUE). [8] In international law, agreements between custodians of bodies in different states that are not legally binding with states are referred to as gentlemen`s agreement. At most, they have a commitment effect based on good manners. In their effects, they outperform political declarations of intent (always reversible from political orientation) and codes of conduct (codes of conduct – non-binding recommendations of a certain typical behaviour). [10] A classic gentlemen`s agreement is the final act of the Helsinki CSCE.

[11] Is there not a translation, have you noticed a mistake or do you just want to praise us? Fill out the comment form. The email address is optional and, in accordance with our privacy policy, only serves to respond to your request. Results: 25. Exactly: 25. Processing time: 95 ms. Do you have any comments on our online dictionaries? Please confirm that you are a human being by ticking a box. [1] The agreement is based on good faith[2] and, more often than not, on mutual trust. [3] Statements are made without the will to pursue the law, because the success one seeks must be achieved by trusting the word of the partner or by committing to decency. [4] [5] This is therefore an example of so-called soft law[6] which exists in both private and public law, particularly in international law.