Some companies are reluctant to enter into comprehensive and detailed contracts and simply exchange documents defined from time to time such as Declarations of Intent (LOI), Memorandums of Understanding (MOU), gentlemen agreements, etc. But what binding value do these documents have in the event of a divergence in international trade? In the Italian system, good faith commitment is an obligation to seriously engage in negotiations and it is considered that a party refuses to sign the contract without success after an agreement has been reached on the elements of the contract at issue. It was a gentlemen`s agreement, for example the pact between Italy and the United Kingdom of 2 January 1937, which preceded the Easter agreements. Gentlemen agreements deserve a separate discourse and are generally not made up of a written document, but oral guarantees with a duty to speak, and any sanction consists only of the loss of credibility of the person who has committed. These promises are therefore non-binding and are generally used in narrow environments where non-compliance with their word is easily known to members of a small community (think of the stock exchanges of certain raw materials). Since this is not a constraint, it is generally accepted that the incentive not to fail in a gentlemen`s agreement lies in the mutual convenience of respecting it (for example. B, the benefit to both parties or the limitation of damages or risks that, without the agreement, could be worse for both parties). For example, if, pending the formalization of a purchase, the supplier authorizes the supplier to continue manufacturing and, for fear of losing the agreement, the supplier begins to convert it into a non-contract. If the decision is not final, the minutes, minutes, minutes, correspondence between the parties and the judge then judge the duty of good faith in the negotiations are respected. A gentlemen`s agreement is an informal pact between two parties, usually written orally or less frequently.
It is essentially based on the assumption that both parties will respect the word given to their honour because, unlike a formal contract, it cannot be defended in court. However, even if agreements are made in writing under this title, it will be difficult to support its non-compulsory agreement by invoking the Gentlmen agreements. On the other hand, it cannot be ruled out that an oral agreement, demonstrated by testimony and other supporting factors, can, in all cases, justify proof of a contract, even if the assumption is remote, given the importance of the right of certificate in the field of commercial obligations. A separate speech deserves the definition of gentlemen agreements which, in general, should not consist of a written document. These are oral guarantees, which involve an obligation to speak, and the possible sanction is simply to lose the credibility of the person who has committed himself.