Lex Mercatoria: Market-Oriented Legal System

ABDOLLAHI, MOHAMMAD JAVAD; Karimi, MOHAMMAD; Arab Ahmadi, Majid Reza

doi:10.48308/eclr.2025.238413.1126

Lex Mercatoria: Market-Oriented Legal System

Document Type : Original Article

Authors

MOHAMMAD JAVAD ABDOLLAHI ¹ ^¶

MOHAMMAD Karimi ²

Majid Reza Arab Ahmadi ³

¹ Assistant Professor, Faculty of Law & Economics, Islamic Azad University: Khomeinishahr Branch, Khomeinishahr, Iran. Corresponding Author Email: dr.abdollahi@iau.ac.ir

² Ph.d Candidate, Faculty of Law, Theology & Political Science, Islamic Azad University: Najafabad Branch, Najafabad, Iran

³ Assistant Professor, Department of law, Islamic Azad University: Farahan Branch, Farahan, Iran.

https://doi.org/10.48308/eclr.2025.238413.1126

Abstract

Specialized communities in various fields of law, particularly those concerned with the rights of merchants, have long demonstrated a tendency to create legal rules that extend beyond the legislative authority of national legislators. This phenomenon arises from the inherent power of international markets, which, in practice, have proven ability of generating legal norms without state legislature's intervention. In this context, "Lex Mercatoria"—as a transgovernmental legal system—has emerged and evolved under the influence of international markets. As such, Lex Mercatoria can be characterized as a "market-oriented" legal system. At the same time, it has the required practical ability for adapt to the fluid and evolving conditions of international markets. Addressing the central research question of how international markets and Lex Mercatoria have mutually influenced each other—both in the creation and evolution of Lex Mercatoria and in meeting the demands of international markets—this study employs a library-based research methodology supplemented by note-taking in research. By examining the historical development of Lex Mercatoria and analyzing the pivotal role of international markets in creating the economic conditions necessary for its growth, the authors assess the suitability of Lex Mercatoria for the transnational nature of international markets. The findings indicate that Lex Mercatoria, as an example of soft law, has successfully developed and adapted to the unique conditions of international markets. Lex Mercatoria, as one of the examples of soft law, has grown and evolved based on the special conditions of international markets, developing in specialized branches—normally around a particular industry—and, in turn, has to respond to the distinctive conditions of international markets.

Keywords

Lex Mercatoria

Merchants

National Legal Systems

International Markets

International Trade Law

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