Commonwealth (930-1262)
In 930, the ruling chiefs established an assembly called the Alþingi (Althing). The parliament convened each summer at Þingvellir, where representative chieftains (Goðorðsmenn or Goðar) amended laws, settled disputes and appointed juries to judge lawsuits. Laws were not written down, but were instead memorized by an elected Lawspeaker (lögsögumaður). The Alþingi is sometimes stated to be the world's oldest existing parliament. Importantly, there was no central executive power, and therefore laws were enforced only by the people. This gave rise to blood-feuds, which provided the writers of the Icelanders' sagas with plenty of material.
Iceland enjoyed a mostly uninterrupted period of growth in its commonwealth years. Settlements from that era have been found in southwest Greenland and eastern Canada, and sagas such as Eiríks saga rauða and Grænlendinga saga speak of the settlers' exploits.
Read more about this topic: History Of Iceland
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“I’the commonwealth I would by contraries
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Would I admit; no name of magistrate;
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And use of service, none; contract, succession,
Bourn, bound of land, tilth, vineyard, none;
No use of metal, corn, or wine, or oil;
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And women too, but innocent and pure.”
—William Shakespeare (1564–1616)