Honoring a Deal

Some time ago I came across an inspiring story in Donald Trump’s Art of the Deal. The story involves Walter Hoving, then the president of Tiffany & Company.

Trump negotiated a crucial deal with Hoving to purchase the air rights for the area above Tiffany as part of his plans for Trump Tower. They reached an understanding and oral agreement just before Hoving was to leave on a family vacation.

Trump was worried that if they did not sign the paperwork prior to Hoving’s departure that he would not be able to rely on the deal. Hoving was offended that Trump would insinuate that he would not honor the oral agreement that they had made.

While Hoving was gone, the rates for air rights climbed dramatically as several other similar deals closed at much higher rates in NYC. When Hoving returned, two of his executives tried to convince Hoving to back out of the deal with Trump. Hoving’s response was, “Gentleman, I shook hands with this young man over a month ago. When I make a deal, that’s the deal, whether it’s a good one or a bad one. And I trust I won’t have to explain myself again.”

What inspiring class and integrity!

What motivational stories of honoring deals inspire you?