Legal aspects of management in commercial partnerships

Abstract

The social development which evolved since the existence of man on earth, has had a great influence on the development of the various systems of trade. We note that trade appeared in its rudimentary form, with the barter system where man had exchanged his produce with that of another. Trade at this primitive stage was managed by the 'pater familias' who had full control over the family's possessions and although he could be given advice, his decision was final and could not be revoked. However, as trade became more complex, very often it appeared obvious that one man did not have the required capital, or that he could not cope with all the work alone. At this stage we note the birth of the Commercial Partnership which although still in its primitive stage, the fundamental principle of the commercial partnership, namely that of combined capital, labour and the initiative of several persons together, was already in existence. In due course trade became the principal object of such associations, for it was realised that only by such means traders could satisfy adequately the increasing needs of consumers, particularly when business undertakings became so big as to be beyond the capacity of single traders.