[cbb330]

This can be summarized as appealing to a higher power — your example is the courts, an alternative is the public reputation / free market. Without a 3rd party institution to appeal to, the parties must reconcile between themselves in a conflict e.g. violence. Same principle applies often in macro/micro contexts.

[sneak]

Even the public reputation and free market system reduces ultimately to threat of violence, due to the fact that bank balances are maintained by state-licensed entities. It's just one more level of abstraction from state violence, but it is still always there.

[cbb330]

Whether it’s bank balances or pitchforks, the result is a conflict. Whether both parties are able to delegate judgement to a higher power determines the type of resolution. In the case where parties recognize a higher power it can be resolved without true violence (bloodshed)