A gentlemen`s agreement is an informal and unwritten agreement between two or more parties, based on trust and honor rather than legal obligations. It is typically made between individuals or organizations that share a mutually beneficial relationship, such as business partners or competitors.

The term “gentlemen`s agreement” originated in the late 1800s, when it was used to describe agreements made between wealthy and influential men in politics and business. These agreements were often made to avoid legal complications and to maintain the status quo in their respective industries.

One example of a gentlemen`s agreement is an agreement between companies to not engage in price competition. While it is not legally binding, the agreement is based on trust and mutual respect between the parties involved.

Another example of a gentlemen`s agreement can be the agreement between two countries over a disputed territory. Rather than going to war or seeking a legal solution, the countries may agree to share the territory peacefully, based on their shared understanding of the situation.

Despite their informal nature, gentlemen`s agreements can have a significant impact on the parties involved and the industries they operate in. However, they are also subject to the risk of being broken if one party chooses to disregard the agreement.

In conclusion, a gentlemen`s agreement is an informal agreement based on trust, respect, and honor, rather than legal obligations. It is often made between individuals or organizations in various industries and can have significant effects on the parties involved. However, it is not legally binding and can be broken if one party chooses to do so.