The concept of transaction is first encountered in the scientific works of J. Commons.
Definition
A transaction is an alienation with the subsequent appropriation of property rights, as well as freedoms created by society. This definition takes place due to the provision by the institutes of the spread of the will of an individual person outside the sphere within which he can directly affect the environment through his actions. In other words, these actions are outside the scope of physical control and turn out to be transactions, which is how they differ from the individual behavior of the subject or the exchange of goods.
Types of Transactions
J. Commons defined three main types of transactions:
- Transaction management. The key point in it is the attitude of management in submission, involving some interaction between people, in which the right to make specific decisions can belong to only one side. In a transaction of this type, the behavior is always asymmetric, which may result from the situation of the parties with the corresponding asymmetry of legal relations.
- Transaction transaction, which serves to conduct the fact of alienation with the assignment of property rights in its implementation. At the same time, there must be mutual agreement between the parties, based on the economic interest of each of them. In this form, the condition of symmetry between the contractors should be observed in the relationship. Its hallmark is the transfer of goods from hand to hand, and not their production.
- The transaction of rationing, which is characterized by the asymmetry of the parties from a legal point of view. However, the place of management should be occupied by a collective body that exercises the function of legal specification. This type of transaction is the formation of the company's budget by the board of directors; adoption by the government of the federal budget and its approval by the relevant authority; decisions of the arbitration court in the event of various disputes arising between business entities. The transaction of rationing does not contain such an element as management. Through its use, wealth is transferred to a specific economic agent.
Key Transaction Examples
Examples of transaction transactions are interactions on the labor market of the employer and the employee, as well as behavior on the political market of lawmakers and actions between the borrower and the lender in the money market. In this case, each of the parties independently makes a decision on participation in the exchange, which may be characterized by asymmetry due to the opposition, for example, of the trade union to specific entrepreneurs. Therefore, equal rights can be traced in unequal bargaining power.
Based on the theory of J. Commons, we can confidently assert that the main result of the transaction of management is the right to wealth, and not its redistribution. A typical example of such a transaction is the relationship between the master and the subordinate, the slave owner and the slave. This transaction is the behavior of subjects characterized by asymmetry. As objects of a management transaction, one of the parties to the relationship in the legal field is accepted. The result is a decrease or increase in overall efficiency.
Modern theories
Doctor of Law T. Shiktybaev examined the economic categories of “transaction and associated costs” based on business development and functioning business contracts. Therefore, in order to thoroughly understand the essence of an entrepreneurial contract with its most effective application to achieve its goals, scientists conducted research on these economic categories as a subject of business law.
The value of transactions for the business sector
The significance of both transactions and transaction costs in entrepreneurial activity is key, which follows from the definition itself. After all, this type of activity is unthinkable outside of institutional agreements in order to obtain appropriate profits.
The transaction used in economic activity is the provision of the circulation of resources necessary for the implementation of entrepreneurship. At the same time, it is customary to consider the category as the corresponding costs, the success of all activities of the business entity depends on the quantity in quantitative measurement.
It is clear that the higher the transaction costs, the more expensive the consumer will be the price of the goods, which leads to a decrease in sales volumes for the entrepreneur, and not every citizen will be able to satisfy the need for a particular product. They are of particular importance in the transition to a market economy. In this case, the role in the regulation of entrepreneurship with an element of corruption is assigned to state bodies. Knowledge of the essence of transactions, as well as such costs allows the theory to develop mechanisms for their reduction. As a result, funds are determined that allow them to be distributed so that voluntary exchange is not only possible, but also beneficial for the entrepreneur and other market participants.
