A verbal gentlemen`s agreement is a term used to describe an informal agreement made between two parties, usually men, that is not legally binding. It is a gentleman`s agreement because it relies on the trust and goodwill of both parties to honor the agreement.
Verbal gentlemen`s agreements can be made in a variety of settings, from business deals to personal arrangements. For example, two friends might make a gentlemen`s agreement to split the cost of a vacation rental, or two business partners might agree to divide profits from a new venture in a certain way.
While verbal gentlemen`s agreements may seem like a convenient and easy way to make agreements without involving lawyers or formal contracts, they can also be risky. Without a written contract, it can be difficult to prove the terms of the agreement or hold the other party accountable if they fail to honor their side of the deal. Additionally, in some cases, verbal agreements may not hold up in court.
To avoid problems with verbal gentlemen`s agreements, it is important to communicate clearly and make sure both parties have a shared understanding of the terms of the agreement. It may also be helpful to follow up with a written summary of the agreement, even if it is not a formally binding contract.
In some cases, it may be better to involve a legal professional to formalize the agreement and ensure that both parties are protected. This can be especially important in business deals or agreements involving large sums of money.
In summary, verbal gentlemen`s agreements can be a useful tool for making informal agreements, but they also come with risks. To ensure that both parties are protected, it is important to communicate clearly and consider involving legal professionals when necessary.