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For centuries, large parts of Europe conducted long distance trade without a centralized state enforcing contracts. This system was known as the lex mercatoria, or the law merchant. Merchants traveling between cities, kingdoms, and regions needed reliable rules to trade with strangers. Instead of waiting for kings or governments to solve that problem, they solved it themselves. Private merchant courts emerged along major trade routes and fairs. These courts resolved disputes quickly. Rulings wer
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