Unlimited liability of the paterfamilias
When a father owned a business (e.g., in agriculture, crafts, or manufacturing), he had unlimited liability (in solidum) for actions taken by his subordinates. When he appointed a son, a slave, or another employee to manage his business, he remained liable for contracts made by the business manager (institor) in connection with the business.
The legal agreement between the father or principal and the business manager or agent rested on status or contract. Sons-in-power and slaves acted within the power of the principal (patria potestas or dominica potestas), while business managers not submitted to the patria or dominica potestas worked under contract.The praetor introduced two actions in his edict to allow creditors to directly sue the owner or principal of a business: the actio institoria and the actio exercitoria. The former allowed a general claim against the paterfamilias or owner of the business for acts committed by the business manager in the development of the business. The actio exercitoria, however, allowed a specific claim against the pater if he was a shipper (exercitor navis) or appointed a captain (magister navis). In the latter case, the father was liable for commercial transactions entered into by the ship’s captain.
The paterfamilias also had unlimited liability for actions taken by his sons- in-power or slaves when he had given them authorization (iussum) ahead of time or subsequent ratification (ratihabitio). Authorization could be revoked at any time before a transaction was concluded (Ulpian, D. 14.4.1.2). The paterfamilias could be sued directly in a praetorian action called actio quod iussu when he had authorized a transaction, in which case he could be liable for full damages to the plaintiff.
Peculium
The peculium was the institution that allowed sons and slaves to develop independent commercial activity.
According to Roman law, all things acquired by a son or a slave were acquired for his father or master. A father, however, could allow his son (and a master his slave) to administer certain assets (peculium), including land, money, goods, commercial businesses, and even (other) slaves. Although technically this peculium remained the property of the father or master, in practice the assets were regarded as belonging to the son or slave as a sort of separated private property. The father or master, however, could take the peculium away at any time, and when the son or slave died, the peculium reverted to the father or master.Under Augustus, anything acquired by sons in the course of their military service became part of their military assets (peculium castrense). The sons had full capacity to dispose of such assets as they pleased, even by will (E. P. 20.10). Emperor Constantine extended this category to include all of a son’s earnings from any branch of public service. Around the same period, sons were permitted a limited interest in what they received from their mother or
Family law 137 her relatives (bona materna). This interest was eventually extended to anything they received from someone other than their father (bona adventitia).
Where a son or slave entered into a transaction, the father or master was liable to the extent of the peculium, after deducting anything that was due to himself - or to the extent to which the father or master’s estate had profited from the transaction (actio de peculio et de in rem verso, Gaius 4.72a). But where the father or master knew of the commercial business that his son or slave was entering with his peculium (Ulpian, D. 14.4.1pr.), the father or master, precisely because of his foreknowledge, was treated like an ordinary creditor, without having the privilege of deduction. If a creditor considered that he had been unfairly treated in the distribution process, he could bring the actio tributoria against the father or master to have his own share increased to the proper amount. All these actions (institoria, exercitoria, quod iussu, de in rem verso, de peculio, and tributoria) belonged to the category of actiones adiecticiae qualitatis (“added actions”) - a term that medieval glossators applied based on Paul, D. 14.1.5.1.
More on the topic Unlimited liability of the paterfamilias:
- The paterfamilias and his household
- 9 Suing the Paterfamilias: Theory and Practice
- 2. Liability for others in Roman law (apart from noxal liability)
- Noxal Liability
- The liability of the borrower
- Noxal liability
- Strict liability in disguise
- The liability of the mandatarius
- Contractual Liability
- 3. Liability for Others
- 1. Vicarious liability
- Liability for omissions
- Cumulative liability
- NOXAL LIABILITY
- Liability for eviction and latent defects
- Range of liability of the conductor
- Liability for damage caused by animals
- The Example of Delictual Liability for Others
- Liability for Helping
- The liability of the mandator