9 O`Conneix, supra note 6, at 199-200. Other legal experts have, however, noted that vague and ill-defined provisions appear in agreements which, because of this uncertainty, do not lose their binding character. See Reuter, P., Introduction to the Law of the Treaties 44 (1972); Fitzmaurice, G. G., report on treaty law to the International Law Commission.  2 Y.B. Law Comm. 117, A Doc. A/CN.4/101 (1956). He said that «it seems difficult to refuse to designate a treaty as an instrument – like.
B a peace treaty and Amity or Alliance – even if it establishes only a simple relationship and suspends its consequences on the basis of an implication on the rights and obligations associated with it, without them being translated into certain articles. Id. In some cases, these are gentlemen`s agreements in which Wall Street financiers, such as J.P. Morgan and his «House of Morgan,» would meet with the bureau to obtain prior authorization for mergers and acquisitions. One such example was the gentlemen`s agreement in which regulators and the president ignored the Sherman Antitrust Act, which allowed united States Steel Corp. to become the world`s first multi-billion-dollar company. The end result may, in many cases, be higher cost or lower quality products for consumers. Worse, a gentlemen`s agreement can be used as a means of promoting discriminatory practices, as in a «network of old boys.» However, there are times – usually in business agreements – when a «gentleman`s agreement» is concluded (i.e. in the absence of written contracts), but there are also no clear legal mechanisms or other legal mechanisms to ensure that the terms of that agreement are applicable.
In these cases, are the terms of a «gentleman`s agreement» 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. Gentlemen`s agreements have come to regulate international activities as the coordination of monetary or trade policies.  According to Edmund Osmasczyk in the United Nations Encyclopedia and International Agreements, it is also defined as «an international term for an oral and unwritten but fully valid agreement.»  This type of agreement may allow a nation to circumvent national legal requirements to enter into a formal contract or it may be useful for a government to want to enter into a secret agreement that does not engage the next government.  According to another author, all international agreements are gentlemen`s agreements because, just before the war, they are all unenforceable.  Osmaczyk noted that there was a difference between gentlemen`s open agreements and secret diplomatic agreements.  In the United States, in 1890, the prohibition of gentlemen`s agreements was introduced in interstate trade relations because the secrecy of these agreements was beyond anyone`s control.  Although agreements between individuals often justify legally binding obligations, reciprocal commitments may not result in a legally binding agreement.