The first is the concept of private property or ownership. Ownership of property is key to the market economy. The ownership of property is synonymous with the accumulation of wealth, the market economy is driven by attaining as much wealth, or property, as possible. Aside from the motivating force ownership supplies, ownership is essential in making transactions. If one wishes to sell something, he must first own the item in question.
Ownership enables individuals to trade private property.
This trading of property is the basis for the market economy. The second requirement is contract. Contract is defined as a promise enforceable by law . Contract is crucial to the market economy because it establishes rules for trade. Contracts outline the relationship between the parties involved in any business interaction.