What role does Lex Mercatoria Play in international commercial Essay

What role does Lex Mercatoria Play in international commercial contracts - Essay Example XX century was marked by the rapid surge in international economic relations, which led to an increase of the world trade volume and accelerated the trade turnover between partners from different countries. But amid the dynamic changes of relations in the international commercial turnover, the legal regulation of these relations did not undergo a radical transformation. Such means as collision and substantive rules of national legislation of parties in dispute or the provisions of international contracts were traditionally used. However, in recent years the existence of a certain group of relations, which regulation goes beyond the specified levels, manifested itself. These are relations developing in the process of international trade implementation. Trade has always been a key element in international relations. Due to trade, the exchange of knowledge, customs and traditions among different peoples occurred. Trade also encouraged the development of other economic activities (e.g., banking, insurance and so on.) Any actively developing phenomena require adequate regulation; otherwise, it is impossible to achieve the objectives, pursued by members of the international commercial trade. In this case, the mechanism of regulation must meet, on the one hand, the interests of the market, and, on the other - the needs of the participants of trade relations (Selden, 1995). Objective reality of today is the inability of national legislations to fully resolve the whole range of problems, arising in the process of international commercial