Article I. On Society

- A contract of society is an agreement concerning some thing to be possessed in common for a common good, or for profit to be received according to a proportional share.

I say I. Every society must be made concerning a lawful and honorable thing, and also for the common good of the contracting parties. Moreover, individual partners ought to bring into the society money, or goods, or industry, or work. - Thus from every law.

Cited by 1 passage

Koch–Preuss, Volume V: Man's Duties to His Fellowmen, Part I: Man’s Duties to his Fellowmen Individually, Chapter V: Man’s Duties with Regard to the Temporal Possessions of his Fellowmen, Section 7: Partnerships and Stock Companies, ¶ 2

I say II. A contract of society is a legitimate mode of doing business. It is clear 1. from the civil laws of all nations; 2. from the universal usage of all peoples; 3. from natural right: for it is no less lawful for many jointly than for individuals to make profit from their own things, provided due equality is preserved.

I say III. The required conditions are 1. that there be equality, that is, a division of profit according to the proportion of the thing contributed; 2. that the society be entered upon for a certain time, and before that it is not lawful to reclaim one's own; 3. that the risk of the capital pertain to the owner, unless another pact has been entered into; 4. that each undergo the burden of damages and expenses which arrive by reason of the society; 5. that each apply the same diligence in the society as in private business. - St. Lig. n. 905.

Questions. - Q. 1. How is a society dissolved?

Resp. A contract of society is dissolved 1. by lapse of the time for which it was made; 2. by the destruction of the thing, or by the end of the business; 3. by the natural or civil death of one of the partners; 4. by interdiction of either partner, or by bankruptcy or subversion of goods; 5. by impossibility of furnishing the promised thing ¹.

¹ Through these things the Author does not wish to exclude that the society can also be dissolved legitimately by the mutual consent of the partners.

Cited by 1 passage

Koch–Preuss, Volume V: Man's Duties to His Fellowmen, Part I: Man’s Duties to his Fellowmen Individually, Chapter V: Man’s Duties with Regard to the Temporal Possessions of his Fellowmen, Section 7: Partnerships and Stock Companies, ¶ 6

Q. 2. What if someone, while his partner is unwilling, withdraws from the society before the time?

Resp. He is bound to compensate the damage, namely to pay the profit ceasing from the money to be furnished by him, or to render the profits of his own industry. - See Cases, n. 981 and following.