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Jus Accrescendi Inter Mercatores Locum Non Habet, Pro Beneficio Commercii
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.
Table of content
Legal Use & context
This term is primarily used in the context of commercial law and business partnerships. It emphasizes that in business arrangements, the rights of surviving partners or tenants do not automatically transfer upon the death of one partner. This principle is crucial for maintaining the integrity and functionality of business operations, especially in partnerships and joint ventures. Users may find relevant legal forms and templates through US Legal Forms to help navigate these situations.
Key legal elements
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.
Common misunderstandings
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.
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