Lex Mercatoria

Sreesankar. M And Riamol Ajoy
School of Legal Studies, CUSAT, India.

Volume III, Issue V, 2020

The need for state involvement in matters of international trade is indispensable. Without the intervention of the state, the ability of parties who belong to different legal systems to enter into contract, keeping in mind a plethora of cultural, linguistic and religious differences, is utterly hindered. Especially when taking into consideration, the growth of international trade and the lack of a forum that is unaffected by borders, the question of deciding the appropriate Lex Causae arises.

Yet even so, private entities have dealt with these problems without the intervention of the government. This practice by private entities holds its ground as a crucial element for the growth of international private law. The practice is referred to as ‘Lex Mercatoria’, or merchant law.

As time progressed, the relevance of Lex Mercatoria has changed. However, the scope of the applicability and importance of Lex Mercatoria can be used as a catalyst for change in matters regarding international trade laws and hence the importance of studying Lex Mercatoria for seeking reforms in international trade cannot be disputed.