Personal Transaction Legal Definition

Contracts are the central documents that govern business transactions. Technically, contracts are legally valid and enforceable agreements between two or more parties that create obligations that bind all parties. Parties may include all types of enterprises capable of participating in commercial transactions, including government agencies, individuals, corporations and other private entities. „Going private transaction.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/going%20private%20transaction. Retrieved 26 November 2022. In addition, for a contract to be enforceable, both parties must be able to contract, which means they must mentally understand what they agree on. People who are unable to work are often considered incapable of entering into contractual arrangements, and those with mental illness or minors are considered incapable of doing so. After all, contracts can only be enforceable if they have a legal purpose. This means that a contract that engages in illegal activities is not enforceable in court. Much more is known about Roman commercial law. In Rome, for the first time, a separation developed between ordinary civil law and special rules for foreign (i.e.

mainly commercial) relations. Since civil law applied only to Roman citizens, trade and other relations with and between non-citizens were governed by a separate set of rules – jus gentium or international law. The latter had two characteristics that became characteristic of commercial law: it was more liberal than the strict rules of civil law and was applied uniformly in different parts of the world. As for the specific rules, the Romans received and kept the two institutions of the general average and the previously developed maritime credit. They added two other rules of maritime law: the shipowner`s liability for contracts concluded by the ship`s master (early recognition of an agency relationship which was later generalised) and the master`s liability for damage to or loss of passengers` luggage and equipment. The same responsibility was imposed on innkeepers. Banking and accounting were well developed, and certain prohibition rules were issued against capitalist excesses. Thus, the legal interest rate has been lowered. In the Post-Classical period, attempts were made to obtain a „fair price” by introducing a rule that a sale could be cancelled by the seller if the price paid to him was less than 50% of the value of the goods sold.

As mentioned earlier, real estate is defined as any property that is land or attached to land. This includes buildings and crops. The idea here is that real estate cannot be moved, while personal property cannot be moved. There is also a basic assumption that most properties have a higher value than personal property (although this is certainly not always the case). Another important rule, also of a maritime nature, appeared in connection with the maritime credit that developed in Athens. A capitalist would lend money for a maritime trade expedition. The loan would be secured per ship and per cargo, but the repayment of principal and interest would depend on the safe return of the ship. The interest rate of 24 to 36 percent, which was well above normal interest rates, reflected highly speculative risks. This transaction then turned into transport insurance. However, many countries have adopted a technical approach to trade with precise definitions and important legal consequences. This is most often the case in civil law countries. In these countries, therefore, the concept of trade has more than a mere descriptive function.

It is part of the specific rules of trade. In France, for example, bankruptcy is open only to traders and commercial organizations, and there are special rules in commercial matters. In Germany, too, the general rules on the sale of consumer goods are partially replaced by special rules for commercial sales. A commercial transaction thus generates a number of specific legal consequences that differ from those of ordinary consumer transactions. Such a special trade regime generally exists because it is felt that the ordinary citizen should not be exposed to the rigours of trade rules, which require a well-informed and versatile person who does not need as much protection against the legal risks and consequences of his business.