Transactions: the condition of capital circulation and sustainable economic development

The paper is focused on topical issues of modern economy, i.e. transaction. It’s a basis of the economic life of economic entities. Despite the variety of works on transactions, there are few of them which cover the theoretical basics of transactions. The existing definitions of the concept “transactions” have a legal nature and don’t reflect the essence of this phenomenon, therefore the author suggests considering transactions in an integrated manner: from the position of a basis and a superstructure. The definition of the concept “transaction” offered by the author from the basis position (as relations of production) is considered as an innovation. The place and a role of transactions in the circulation of capital and the economic life of economic entities are specified in the article. The economic life represents alternation and combination of various transactions, on the results of which efficiency of all activity of economic entities depends. Transaction is a basis of reproduction process, and its continuous process serves as a condition of the capital circulation and sustainable economic development.