Short answer. Yes. Article 521 declares the goodwill of a business to be property, and it may be transferred together with the right to use the name under which the business is conducted. Goodwill is not treated as a vague reputation only — the law recognizes it as something you can actually sell.
What the law says
The goodwill of a business is property, and may be transferred together with the right to use the name under which the business is conducted.
Civil Code, Article 521 — Goodwill As Property. Read the full provision →
Goodwill is legally recognized as property
Article 521 answers the question directly and briefly: the goodwill of a business is property, and may be transferred together with the right to use the name under which the business is conducted. That first clause matters on its own — the law does not treat goodwill as a mere intangible byproduct of running a business that has no independent existence. It is classified as property in the same sense other assets are, meaning it can be owned, valued, and transferred like any other thing a business possesses.
It travels together with the right to the business name
The article specifically pairs goodwill with the right to use the name under which the business is conducted. This reflects how goodwill actually functions in practice: much of what makes a business's reputation valuable is tied to the name customers already recognize and trust. Selling the goodwill along with the right to keep using that established name lets a buyer step into the reputation the seller built, rather than acquiring an abstract asset detached from the identity customers associate with it.
What this means when buying or selling a business
Because goodwill counts as property, it can be a distinct item in a sale of a business — valued, negotiated, and transferred as part of the transaction, separate from physical assets like equipment or inventory. A buyer purchasing a business is not limited to acquiring tangible items; the reputation, customer relationships, and recognition the business built up can be included in what is sold, and the seller can transfer the right to trade under the same name as part of that same deal.
What the article does not spell out
Article 521 establishes that goodwill is property and can move together with the business name, but it does not itself set out how goodwill should be valued or what specific documentation a transfer requires. Those practical questions are usually addressed in the contract of sale itself. If you are buying or selling a business, the terms of your specific agreement — not this article alone — will determine exactly what goodwill is being transferred and on what conditions.