Effective civil legislation as a factor reducing transaction costs

Introduction: the author puts forward a thesis that the problem of reducing transaction costs, which is traditionally discussed by economists, may be of interest for specialists in civil law. Purpose: to prove that effective legislation is a factor that reduces transaction costs. Methods: the methodological framework of the research is based on a set of general and specific scientific methods of cognition, the main of which being the analytical and critical method, systematization, analysis and synthesis, abstraction and concretization. Results: basing on the classification of transaction costs proposed by economic science, it is shown how specific legal norms can help increase or decrease transaction costs of economic agents. It is argued that transaction costs may be reduced through consistent adherence to the principles of civil law and through detailed legal regulation of civil relations. Conclusions: the solution of the important economic problem of transaction costs reduction correlates with the solution of the problem of improving legal norms regulating civil circulation.