Understanding Jus Accrescendi Inter Mercatores Locum Non Habet, Pro Beneficio Commercii in Commercial Law

Definition & Meaning

The phrase jus accrescendi inter mercatores locum non habet, pro beneficio commercii translates to "the right of survivorship has no place among merchants, which is for the benefit of commerce." This principle indicates that in business partnerships or tenancies, the concept of survivorship"”where one partner automatically inherits the interest of a deceased partner"”does not apply. This approach is designed to promote stability and continuity in commercial relationships.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: In a partnership where two individuals own a business, if one partner passes away, their share does not automatically go to the surviving partner. Instead, the deceased partner's share may be transferred according to the terms of the partnership agreement.

Example 2: In a commercial lease agreement, if one tenant dies, the lease does not automatically pass to their heirs. The remaining tenant may need to renegotiate the lease terms or find a new partner. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Difference
California Partnership agreements may specify different terms for survivorship.
New York State law may require specific provisions in partnership agreements regarding survivorship.
Texas Partnerships can opt-in to survivorship rights if stated in the agreement.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Difference
Right of survivorship The automatic transfer of ownership upon death. Applies primarily to joint tenancy, not business partnerships.
Partnership agreement A contract outlining the terms of a partnership. Can specify terms regarding survivorship, unlike the default rule.

What to do if this term applies to you

If you are involved in a business partnership or tenancy, it's important to review your partnership agreement to understand the terms regarding survivorship. Consider consulting with a legal professional to ensure that your interests are protected. Additionally, you can explore US Legal Forms for templates that may assist you in drafting or revising your partnership agreements.

Quick facts

  • Applies primarily to business partnerships and tenancies.
  • Focuses on the continuity of business operations.
  • No automatic transfer of ownership upon death unless specified.
  • Partnership agreements can clarify survivorship rights.

Key takeaways

Frequently asked questions

The share does not automatically transfer to the surviving partner unless specified in the partnership agreement.