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Commenda

The commenda was a medieval contract which developed in Italy around the 13th century, and was an early form of limited partnership. The commenda was an agreement between an investing partner and a traveling partner to conduct a commercial enterprise, usually overseas. The terms of the partnership varied, and are usually categorized by modern historians as unilateral commenda and bilateral commenda, based on the share of contributions and profits between the partners. The bilateral commenda was known in Venice as collegantia or colleganza. The commenda has been described as a foundational innovation in the history of finance and trade.

History
The origins of the commenda are debated, and likely derived from several sources including the Babylonian tapputûm, the Greco-Roman societas consensu contracta and foenus nauticum, the Byzantine chreokoinonia, the Muslim qirad, and the Jewish 'isqa. By the 12th century, the commendatio had supplanted the colleganza in Venice. == References ==
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