Transaction Cost
/ˈtrænzækʃən kɒst/
Definitions
- (n.) Expenses incurred in the process of buying or selling goods or services, including search, bargaining, and enforcement costs.
The contract minimized transaction costs by clarifying obligations upfront.
Forms
- transaction cost
- transaction costs
Related terms
See also
Commentary
Transaction costs encompass not only monetary expenses but also time and effort costs; drafting agreements to reduce these costs enhances enforceability and efficiency.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.