Legal Definitions - commenda

COMMENDA

A commenda is a type of business partnership where one person is responsible for managing all of the business property.

• A wealthy merchant invests money in a trading venture and appoints a trusted friend as the commenda to manage the business affairs.
• A commenda is formed between a landowner and a tenant farmer, where the landowner provides the land and the tenant farmer manages the crops and livestock.

These examples illustrate how a commenda works by showing how one person is given the responsibility to manage the business property while the other person provides the capital or resources. The commenda is a way to share the risks and rewards of a business venture while allowing one person to focus on managing the day-to-day operations.