what is a gentlemen s agreement 
a gentlemen s agreement is an informal often unwritten agreement or transaction backed only by the integrity of the counterparty to actually abide by its terms an agreement such as this is generally informal made orally and is not legally binding despite their more casual nature a violation of a gentlemen s agreement could have a negative effect on business relationships if one party decides to renege on their promise a gentlemen s agreement also spelled gentleman s agreement may or may not be consummated by a handshake understanding gentlemen s agreementsa gentleman s agreement being more of a point of honor and etiquette relies on the forbearance of two or more parties for the fulfillment of spoken or unspoken obligations unlike a binding contract or legal agreement there is no court administered redress if a gentlemen s agreement is broken still social pressures and norms help keep gentlemen s agreements in force indeed the damage to one s reputation can be more harmful in the long run than any monetary gain that may result from going against such an agreement trust can quickly be eroded in such a case and few people will want to enter into business with somebody with a reputation for reneging 