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Termination of the societas

(a) Renuntiatio, tnors socii, insolvency

These are the basic features of societas in classical Roman law, and most of the details set out on the following pages follow naturally from them.

The operation of a partnership is usually designed to extend over some time, at least, as long as it is not merely unius rei; and because societas was based on the consent of the socii, it follows that their consensus had to be a continuing one. "Manet autem societas eo usque donee in eodem sensu perseverant [socii]."[2333] The societas could exist only as long as the partners, in the pursuit of their common purpose, kept to their agreement. As a consequence, the partnership was dissolved if one of the partners renounced it.[2334] It was not possible for him simply to withdraw and to leave the societas between the remaining partners intact.[2335] His renuntiatio invariably terminated the contract as a whole, since it was now no longer carried by the original consensus.[2336] [2337] [2338] If the remaining parties decided to carry on as partners, this was held to be a new partnership.28 Similarly, the death of one of the partners terminated the partnership: morte socii solvitur societas. Reason: "qui societatem contrahit certam personam sibi digit.1,29 We are reminded of the same rule and the same rationale in the case of mandatum:[2339] both socius and mandator place their confidence in a particular person; if that person dies, the essential basis sustaining the contractual relationship falls away.[2340] For the same reason the partners were not able to provide that the future heir of one of them shouldjoin the partnership.[2341]" The societas found its basis in the trust and faith existing between two or more specific individuals, and it was totally impossible to predict whether this type of relationship would extend to a party that was as yet unknown.
Capitis deminutio being, civili ratione, equivalent to death, brought about the end of the partnership, too.[2342] So did the insolvency of one of the partners.[2343] Finally, and perhaps most interestingly, the bringing of the actio pro socio terminated the societas: "... si... actio interierit, distrahi videtur societas.1,35

(b) The bringing of an actio pro socio

Ultimately, of course, it was litis contestatio that extinguished the partnership obligations; but by initiating a lawsuit that necessarily entailed a general settlement of accounts, a socius could be taken to have implicitly renounced the partnership: it was as clear a manifesta­tion of his desire no longer to be associated with the other members of the societas as one might wish to get. An actio pro socio manente societate was thus excluded in classical law.[2344] [2345] [2346] This reflects the "isolationist" and libertarian character of Roman jurisprudence.[2347] Of course, societas gave rise to obligations between the socii. But the lawyers were loath to intervene in an existing and functioning unit. Thus, there were no legal rules determining the internal relationship among the partners, and the details of how they set about pursuing their common purpose were left entirely to their mutual good understanding.[2348] It is the same attitude that prevailed, for instance, with regard to the regulation (or rather: non-regulation) of family affairs.[2349] [2350] [2351] [2352] [2353] [2354] As long as the partnership functioned, the intervention of the law was neither necessary nor appropriate. If, on the other hand, there were problems that could no longer be resolved in an amicable manner, the co-operation between the partners had lost its gravitational centre: a type of trust, faith and loyalty that derived from and was reminiscent of the ancient fraternity. Litigation does not represent the pinnacle of good brotherly relations. The spirit of the partnership had broken down. It did not make sense, under these circumstances, to carry on with the empty shell.

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Source: Zimmermann R.. The Law of Obligations. Roman Foundations of the Civilian Tradition. Juta & Co, Ltd,1992. — 1241 p.. 1992

More on the topic Termination of the societas:

  1. Evolution of the contract of societas
  2. The nature of societas
  3. Basic features of classical societas
  4. 3. CREATION AND TERMINATION OF PA TRIA POTESTAS
  5. Societas
  6. The societas and third parties
  7. Termination of Obligations
  8. Termination of Servitudes
  9. 2. CREATION AND TERMINATION OF SLAVERY
  10. Termination of Real Security
  11. CHAPTER 24 Termination of Obligations
  12. Societas
  13. Partnership (societas)
  14. Societas (Partnership)
  15. The actio pro socio
  16. Creation and partition of joint ownership
  17. 4. MARRIAGE
  18. Freedom of contract and its limitation
  19. The actio pro socio