Transaction

A trade of values between two parties. Transaction takes place when the two parties in the exchange process reached to an agreement at mutually agreeable terms. A transaction involves several things: (1) At least two things of value, (2) Agreed upon conditions, a time of agreement and a place of agreement. A legal system supports and enforces compliance on the part of the transactors i.e., companies. Without a law of contracts, people will approach transactions with some distrust, and every one would lose.