Customs of business turnover. Meaning and application

The development of entrepreneurial activity gave impetus to the formation of new rules for doing business, a new formation, such a notion as the customs of business turnover and relations between partners. Time has forced to create new customs of business turnover. These rules have never been and do not enter into the field of state legislation, but they complement it.

At the beginning of the development of trade relations between people, norms of regulation of business relations did not always exist, they simply were not written down on paper. Mankind has not gained enough economic experience of doing business. Early commodity relations had a primitive legal basis, so there was a need to back them up with verbal agreements or other legal acts.

So historically, the customs of business turnover were initially established between individuals, and then, as business developed, further development was also extended to legal entities.

The customs of business turnover and their formation can be traced at the beginning of the development of this type of entrepreneurial activity, like insurance. For example: two millennia ago BC the participants of the trade caravans, who set out on a dangerous path, decided in advance the issue of probable attacks, thefts, natural disasters and knew that they bear losses together. The contract was oral, but it was carried out necessarily. Such norms of behavior between people were dictated by the conditions of survival.

Another example of oral agreements in the conduct of business practices in the development of maritime trade is also illustrative.

Known is such a historical fact that in England in the tavern owners of merchant ships gathered who intended to go on a long journey to sell goods and make a profit. The purpose of this meeting was to become an agreement with other merchants who, in the event of unforeseen losses, promised to compensate for the losses. Along with the signing of some papers, there were oral agreements between them.

In ancient Russia, collections of laws were used. In these acts, there were several ways of concluding contracts: a board, a record or an oral agreement. The contracts, in fact, were ancient legal acts. At the conclusion of oral agreements, it was necessary to have the presence of such people as witnesses. Later, when guilds of merchants appeared, the word given by the merchant was the highest guarantor of reliability.

Under the custom of business turnover is recognized the need to resolve such a situation, in which the required issues can not be resolved by the current legislation, as well as by the particular contract itself.

The custom of business turnover is applied when existing legislative acts can not satisfy the needs of business. This relationship is most vividly reflected and widely used by the Chamber of Commerce and Industry, its documents detail trade and port customs.

As noted earlier, the most common custom of business turnover is used in the conduct of foreign economic activity and foreign exchange operations. Legislative acts of states in these fundamental sectors of the economy often do not coincide. How to come to an agreement and get a mutual benefit in concluding business deals? How to resolve unforeseen situations in trade or money relations?

Under the custom of business turnover, the rules of behavior that have been historically established and widely applied in business activity are recognized. It is not necessary that these relations are regulated by the laws of the state. To use these rules, it does not matter whether they are documented.