Also known as: societates · société · sociétés · socius · socii · partnership · company · civil company
Written by attorneys · grounded in primary & secondary sources — see below
A partnership contract in Roman law by which two or more persons agree to share profits and losses from a common enterprise. The arrangement creates mutual rights and obligations among the participants known as socii.
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Marcus and Lucius formed a societas to operate a shipping venture between Ostia and Alexandria. When a dispute arose over cargo loss, the opposing party served a notice describing the matters for examination and required the societas to designate a socius to testify on its behalf.
Titus and Publius established a societas for retail sales in the forum. To comply with filing rules the name had to include the word company or an abbreviation so the provincial magistrate would accept the registration.
Gaius, an advocate, attempted to form a societas with a non-advocate investor to handle client matters. The arrangement violated professional conduct rules because the partnership activities included the practice of law.
Aurelia and Claudia purchased equipment with funds from their societas. Even though title was taken in Aurelia's individual name the property was presumed to belong to the partnership.
The socii contracted to sell land held by their societas. The buyer accepted insurable title because a reputable insurer would cover the property at standard rates even though full marketability was uncertain.
The socii formed a societas variant as a limited partnership. The name had to include the phrase limited partnership or the abbreviation LP and could not suggest limited liability limited partnership status.
The core feature is an agreement among two or more persons to share both profits and losses arising from a common enterprise.
Supporting sources
A societas arises from mere consent without formalities and treats participants as co-owners directly liable for partnership debts while a corporation creates a separate legal entity with limited liability.
Supporting sources
A lawyer may not form a societas with a nonlawyer if any of the partnership activities consist of the practice of law.
…action against the four individual petitioners, who are Negroes and Alabama clergymen, and against petitioner the New York Times Company, a New York corporation which publishes the New York Times, a daily newspaper. A jury in the Circuit Court of Montgomery County awarded him damages of $500,000, the full amount claimed,…