During the Middle Ages of Europe, guilds were formed to protect the common interests of its members. There were two kinds of guilds, the merchant guilds and the craft guilds which will be stated below.
Merchant Guild
During the early Middle Ages, traders who travel from another town to the next one should always have a protection. Even the nobles become thieves. This is why the merchants built a guild to be able to protect their own lives, the lives of others and also the goods. It also served as a protection from the competition of other traders. It’s main purpose of existence was to hold a trade monopoly. Only the members of the guild can cooperate in those business transactions. They always receive charters which gives them the right to this kind of monopoly. A visiting trader must always have the permission of the local guild.
Craft Guild
Almost everything that people during the Medieval times were made by skilled craftsmen. At first, they only made for nobles but they had developments and were already engaging into trading. The demand became higher and it was the start of their relation to each other and started to build guilds. The members make one particular product and only the members can make specific articles. The guild was the one controlling the hours, wages and even the standards of workmanship of each member. They took pride on the products they were able to make. They had fixed pries and also conditions of sales the guilds of merchants. Sometimes, to save metal, they fold cloth to hide a worn spot. If he is founded, he could be banished not only from the guild but also from the town itself which means he can not sell his products or good in that certain place of interest.
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