Commenda Contracts (Eleventh–Twelfth Centuries)

Agricultural and commercial growth in the eleventh and twelfth centuries transformed Europe’s landscape as new cities developed and old ones grew, all interconnected by local and long-distance trade networks. The creation of novel business agreements through partnerships and contracts fueled the economic boom. One in particular was essential to the expansion of trade, the commenda contract, sometimes translated as “business venture.” The commenda had historical precedents but beginning in the tenth century it assumed unique characteristics in the Western Mediterranean, as illustrated in the examples below. Although known by different names in different places, commenda contracts all served the same purpose as legal tools for pooling capital and bringing together investors and managers for sea trade. Italy was a hub for these contracts as coastal cities like Genoa and Venice sought to establish and expand their maritime markets. The types of goods being traded varied widely; they included cotton, silk, sugar, gold, and spices. Sometimes both the investors and the traveling party provided capital for the venture (examples 1 and 3); other times, one party was the sole lender (example 4). When the traveling party returned, the terms of the contract were settled (example 2). In each instance, all parties involved shared the profits and the risks associated with the undertaking.

From Medieval Trade in the Mediterranean World: Number LII of the Records of Civilization, Sources and Studies, ed. Austin P. Evans, trans. Robert S. Lopez and Irving W. Raymond (New York: Columbia University, 1961), 176–79.

The Venetian Commenda or Collegantia

1

Venice, August, 1073

In the name of the Lord God and of our Savior, Jesus Christ. In the year of the Incarnation of the same Redeemer of 1073, in the month of August, eleventh indiction, at Rialto,¹ I, Giovanni Lissado of Luprio together with my heirs, have received in collegantia² from you, Sevasto Orefice, son of Ser Trudimondo, and from your heirs, this [amount]: £200 [Venetian]. And I myself have invested £100 in it. And with this capital (habere) we have [acquired] two shares (sortes) in the ship of which Gosmiro da Molino is captain. And I am under obligation to bring all of this with me in taxegio³ to Thebes in the ship in which the aforesaid Gosmiro da Molino sails as captain. Indeed, by this agreement and understanding of ours I promise to put to work this entire [capital] and to strive the best way I can. Then, if the capital is saved, we are to divide whatever profit the Lord may grant us from it by exact halves, without fraud and evil device. And whatever I can gain with those goods from any source, I am under obligation to invest all [of it] in the collegantia. And if all these goods are lost because of the sea or of [hostile] people, and this is proved—may this be averted—neither party ought to ask any of them from the other; if, however, some of them remain, in proportion as we invested so shall we share. Let this collegantia exist between us so long as our wills are fully agreed.

But if I do not observe everything just as is stated above, I, together with my heirs, then promise to give and to return to you and your heirs everything in the double, both capital and profit (caput et prode), out of my land and my house or out of anything that I am known to have in this world.

Signature of the aforesaid Giovanni who requested this [instrument] to be made.

I, Pietro, witness, signed.

I, Lorenzo, witness, signed.

I, Gosmiro, witness, signed.

The full names of the witnesses are these: Pietro Gossoni; Lorenzo Scudaio; Gosmiro da Molino.

I, Domenico, cleric and notary, completed and certified [this instrument].

2

Venice, May, 1072⁴

In the name of the Lord God Almighty. In the year of the Incarnation of our Lord Jesus Christ 1072, in the month of May, tenth indiction, at Rialto. I, Domenico Zopulo, son of Vitale Zopulo junior, together with my heirs, do make to you, Giovanni Barozzi, son of Giovanni Barozzi, and to your heirs, full and irrevocable release⁵ in regard to an instrument of record which you made to me, whereby I myself invested £50 in deniers⁶ of good alloy and you by the same [instrument] invested £25, and [whereby] you went with all these goods in taxegio to Thebes in the ship of which Leone Orefice was captain. But now, since you have returned from said taxegio, you have rendered me a full, accurate, and true account of it, in regard to both the principal and the profit; under oath you have handed over everything to me and you have settled [accounts]. From now on you shall always remain released in regard to the principal and the profit or to the [penalty of the] double and to all that is stated in the said record, so that on no day and at no time [henceforth] are we to make any further demand or to exert [any more] pressure by any device, whether small or great. I, moreover, have returned to you the record itself. If a copy of it appears in my possession or in that of any man, it shall remain null and void, wholly without validity and force, because there is nothing left in it whereby we should make any further demand upon you. But if we at any time attempt to demand anything in regard to the clauses stated above, I, together with my heirs, promise to pay to you and to your heirs £5 in gold [as penalty], and this release shall [nevertheless] remain in force.

I, Domenico, signed by my hand.

I, Giovanni, witness, signed.

I, Domenico, witness, signed.

I, Leone, witness, signed.

The full names of the witnesses are these: Giovanni, son of Pietro Michiel and Domenico, his brother; Leone, son of Domenico Michiel.

I, Giovanni, subdeacon and notary, completed and certified [this instrument].

The Genoese Commenda and Societas

3

[Genoa,] September 29, 1163

Witnesses: Simone Bucuccio, Ogerio Peloso, Ribaldo di Sauro, and Genoardo Tasca. Stabile and Ansaldo Garraton have formed a societas⁷ in which, as they mutually declared, Stabile contributed £88 [Genoese] and Ansaldo £44. Ansaldo carries this societas, in order to put it to work, to Tunis or to wherever goes the ship in which he shall go—namely, [the ship] of Baldizzone Grasso and Girardo. On his return [he will place the proceeds] in the power of Stabile or of his messenger for [the purpose of] division. After deducting the capital, they shall divide the profits in half. Done in the chapter house, September 29, 1163, eleventh indiction.

In addition, Stabile gave his permission to send that money to Genoa by whatever ship seems most convenient to him [to Ansaldo].

4

[Genoa,] October 7, 1163

Witnesses: Bernizone Serra, Raimondo, Crispino and Pietro Vinattiere. I, Ingo Bedello, declare publicly that I am carrying £41 s.6 [Genoese] of goods belonging to Guglielmotto Ciriolo [invested] in silk and paper to Tunis, and from there to Genoa [where I shall place the proceeds] in the power of Guglielmotto or of his messenger. And he is not under obligation to contribute toward expenses in regard to them except in furnishing the [original] money. [Ingo] on his return [will place the proceeds] in the power of Guglielmotto or of his messenger and, after deducting the capital, he is to have one fourth of the profit. And Guglielmotto himself reserved as his right that there will be no expense for him in it. Done in the chapter house, October 7, 1163, eleventh indiction.

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