ELEMENTS OF LEX MERCATORIA IN THE MERCHANT OF VENICE

Abstract

Lex Mercatoria or the Merchant Law, generally refers to the customary rules and procedures developed within merchant communities to support trade in medieval Europe, without the assistance of government. Although this system has had many names through its evolution, which began to develop sometime in the early Middle Ages, but became widely recognized as commerce expanded in the eleventh and twelfth centuries.

Within the frame of this article Lex Mercatoria will be the target for current analysis taking into consideration such prominent literary text as “The Merchant of Venice” where the elements of lex mercatoria can be found, the law of the sea, insurance issues which were actual during 15-16^th centuries in Serenísima.

Lex Mercatoria is now widely used in International Private law, but if we go back to the roots it has emerged from the customary practices of the traders and merchants of those days, both in the area of maritime trade and in general commercial transactions. It also lowered transactions costs, and provided incentives to live up to promises, allowing for widespread use of contracting and credit as commerce expanded. The customary law system developed behavioral rules based on customs, practice and usage within the network of merchant communities, but processes to encourage recognition, provide adjudication and generate changes in the rules. It is accepted that lex mercatoria is made and framed of the Merchants Customs and the Sea-Laws, which are involved together as the Seas and Earth.