Morals of the Church
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Section — Wouters, Manual of Moral Theology

§ IX. On the Partnership Contract

928.

I. Notion. A partnership contract is a contract by which two or more persons contribute something in common for this end, that the profit received may be divided among them. It is said something, for example money or other goods, labor, industry. But in order that a partnership contract be entered into justly, the hope of profit and the danger of loss must correspond to that which each contributed to the partnership; these things will be clearer from what is to be said under III.

Partnership

929.

II. Form. The form of the contract and its diverse species are to be drawn from civil law.

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930.

III. Morality. The honesty of this contract is clear; indeed Pius XI, with attention paid to present-day conditions of human association, judges it more advisable if, insofar as it can be done, even the contract itself of rendering work be tempered somewhat by a partnership contract (n. 913).

Partnership

931.

IV. Division of profit. In dividing profit, account must be taken both of the money or other good which each contributed, and of labor and industry, and likewise of the risk which each undergoes. But as regards the contribution of money or of another good, it must also be seen whether ownership also or only the use of them was contributed; but as regards the industry contributed, it must be noted that this sometimes is worth more than money or the use of it (St. Alphonsus, III, 907, q. 2). Moreover the division of profit will generally be just if the dispositions of the partnership itself are observed, and, if these are lacking, the statutes of law.

Note. The triple contract is called a contract of partnership together with an added double contract of insurance, namely of the principal and of the profit; that is, to some business one contributes work, another money (the first contract). The latter, furthermore, in order to remove the danger of the principal, yields part of the hoped-for profit under this condition, that his partner take on the danger of the principal (the second contract). Finally, in order to avoid the danger of making no profit, he renounces another part of the hoped-for profit, on condition that he receive a certain profit, even though a smaller one (the third contract). Now no reason appears from which the triple contract, provided equality is preserved, should be called illicit (St. Alphonsus, III, 908).

Partnership