When feudal lords granted charters to guilds that allowed
them to regulate trade, guilds, in return paid taxes, helped raise armies, and
provided other services for their lord. As a result, guilds and merchants
became involved with their lords in the governance of medieval towns and
cities.
Early guilds helped establish trading territories. Since they were considered brotherhoods, the first guilds
were called Confraternities.
Guilds essentially made guild vassals the semi-independent guild towns were
called Communes. The power of law in enforcing their rules were also given to merchant
guilds. As time went by, the services and responsibilities of merchant guilds
became more complex.
