Transaction Cost Law and Legal Definition

Transaction cost means cost connected with a process transaction. For example, a broker’s commission is a transaction cost. It usually resembles the time and effort expended to arrange a deal, or the cost involved in litigating a dispute. Delays can increase transaction costs, especially the attorneys' fees paid by defendants at hourly rates. These costs reduce either the insurance fund or the company's assets, thereby reducing the funds available to pay pending and future claimants.