Civil law partnership - execution against the assets of partners


A civil law partnership is one of the simplest forms of running a business. It is an agreement between two or more partners under which all partners undertake to pursue common goals. A civil law partnership is not an independent entity and, as defined, does not have its own property.

Civil law partnership - company's assets

Nevertheless, in fact, when it is established, each partner makes a specific contribution. It is presumed that all contributions are equal in value. Contributions, all rights and obligations that arise during the life of the company constitute the joint ownership of the partners, commonly referred to as the company's assets. The partners are jointly and severally liable for the obligations of such entity through joint property and each of them individually with personal property, without any restrictions.

Civil law partnership - enforcement of obligations

A creditor of a civil law partnership who is fighting for the satisfaction of his claims may resort to joint ownership of the partners as well as to the individual property of the partner, because each of them bears unlimited, personal and joint liability for the obligations arising in the course of running the partnership. In addition, the creditor may choose whether to direct his claims against the entire company, all partners, or only one of them.

Satisfying the creditor's claims from the property that is jointly owned by the partners is possible provided that they have an appropriate judgment or order. Such a document must obligatorily bear an enforcement clause for all partners, i.e. mention their names and surnames. Therefore, it is crucial to determine whether the obligation was caused by fault and as a result of the conducted business activity. If so, then the creditor has the right to bring an action against all members of the civil law partnership. Such a writ of execution entitles him to both seize the property that is jointly owned by all partners and their personal property. In a situation where the creditor does not have the indicated document, he may then pursue his claims only from the personal property of partners in relation to which he has an enforcement title.