Sweetheart Deal can also forgo an agreement in which you have something that is to your advantage, but only by approval, something else. In another interpretation, this could mean an agreement between two organizations, which has two advantages, but is unfair to competitors or another third party. For example, as part of an AM agreement or an attempt to attract a new executive with bonuses and benefits, the deal could be “cute” for the major players, as they can get very healthy buyback packages. However, restructuring could result in layoffs for many employees at a lower level. This term also applies to special agreements between private companies and public authorities, the group and sometimes a government official by reaping the benefits, not the public. [3] Non-tender contracts may be awarded to individuals with political ties or donations to influential politicians. [4] Sometimes a treasury agreement involves tax breaks or other incentives to encourage a company to do business in that city or state. [5] [6] The Landrum-Griffin Act of 1959 was a federal law that tried to prevent labour contracts and other forms of trade corrupted by unions. [13] A 2019 study examined the language of government orders and searched for terms “Sweetheart Terms” – formulations that are “very business-friendly, but apparently not beneficial to the government.” They found that such language is more often included in contracts with companies that make political contributions. [14] In all cases, when the term “Sweetheart” is used to describe an agreement, it often carries the implication that something abnormal or fish is in progress.

A treasury agreement or treasury contract is a contractual agreement that is usually drafted in secret, which greatly benefits certain parties, while they unduly penalize other parties or the general public. The term was coined in the 1940s to describe corrupt employment contracts, which are more favourable to the employer than to workers, and which generally include a kind of kickback or special treatment for the labour negotiator. [1] [2] A “Sweetheart Settlement” may also be carried out in a legal context. In a class action, for example, lawyers representing a class of plaintiffs can obtain an agreement with the defendant, in which the main result is a lucrative fee for lawyers and not a maximum compensation for class members. [7] Many types of business transactions can be described as beloved. They can occur for many reasons and are subject to different interpretations. For example, the term could describe all kinds of insider trading or it could mean that a public authority has done something dishonourable instead of being punished.