Lex Mercatoria

Lex Mercatoria refers to a body of commercial law that is recognized by the international community, which governs the conduct of merchants and traders. It encompasses customs and practices that have developed in the trade of goods and services across borders.

Historically, Lex Mercatoria emerged in the medieval period as a regulatory framework among merchants trading in Europe, facilitating international commerce through customary trading practices. It laid the groundwork for the development of modern commercial law.

In modern law, Lex Mercatoria is utilized, particularly in arbitration and international commercial disputes where there is a lack of specific statutory provisions. Courts and arbitrators may invoke it to apply unwritten norms and customary practices prevalent in international trade to reach fair decisions.

• A contract clause referencing trade practices recognized in the Lex Mercatoria to resolve disputes without direct reference to national law.
• Arbitration awards that apply the principles of Lex Mercatoria to determine the obligations of parties involved in international transactions.

• Société Générale v. EÜ Fidan, 1992