Sweetheart deal

rdf:langString Sweetheart deal

rdf:langString A sweetheart deal or sweetheart contract is a contractual agreement, usually worked out in secret, that greatly benefits some of the parties while inappropriately disadvantaging other parties or the public at large. The term was coined in the 1940s to describe corrupt labor contracts that were favorable to the employer rather than the workers, and usually involved some kind of kickback or special treatment for the labor negotiator. The term is also applied to special arrangements between private corporations and government entities, whereby the corporation and sometimes a government official reap the benefits, rather than the public. No-bid contracts may be awarded to people who have political connections or make donations to influential politicians. Sometimes a sweetheart deal involves tax breaks or other inducements to get a corporation to do business in that city or state. A "sweetheart settlement" may also occur in a legal context. For example, in a class-action lawsuit the attorneys representing a class of plaintiffs may reach an agreement with the defendant in which the primary result is a lucrative fee for the attorneys rather than maximum compensation for the class members.