A gentleman`s agreement, which is rather a point of honour and etiquette, relies on the indulgence of two or more parties for the performance of pronounced or unspoken undertakings. Unlike a binding contract or a legal agreement, there is no legal remedy for violation of a gentlemen`s agreement. A report by the U.S. House of Representatives detailing its United States Steel Corporation investigation stated that in the 1890s there were two general types of associations or bulk consolidations between steel and ferrous interests in which different groups owned ownership, as well as a high degree of independence: the «pool» and the «Gentleman`s Agreement.» [5] The latter type lacked a formal organisation to regulate production or prices or forfeiture rules in the event of infringement. [5] The effectiveness of the agreement relied on members to meet informal commitments. [5] A gentlemen`s agreement is an informal, often unwritten agreement or transaction, which is supported only by the integrity of the other party to effectively comply with its terms. Such an agreement is generally informal, oral and not legally binding. Gentlemen`s agreements between industry and the U.S. government were common 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. Until Jackie Robinson was hired by the Brooklyn Dodgers in 1946, a gentlemen`s agreement ensured that African-American players were excluded from organized baseball.

[18] Gentlemen`s agreements were a widespread discriminatory tactic, which would have been more common than restrictive alliances to preserve the homogeneity of upper-class neighborhoods and suburbs in the United States. [17] The nature of these agreements made it extremely difficult to prove or follow them, and they were long after the U.S. Supreme Court decisions in Shelley/. Kraemer and Barrows v. Jackson. [17] A source indicates that the gentlemen`s agreements are «probably still in place» but that their use has declined sharply. [17] Gentlemen`s agreements, because they are informal and often not written, do not enjoy the same legal and regulatory protection as a formal contract and are therefore more difficult to implement. In 1890, the U.S.

government imposed a ban on gentlemen`s agreements in trade and trade relations between nations. Despite their informal nature, the violation of a gentlemen`s agreement could have negative consequences on trade relations if a party decides not to keep its promise. A gentlemen`s agreement can also be described as a «gentleman`s agreement» and can be completed by a handshake or not.