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What is a partner by estoppel? |
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Answer» Partners by Estoppel or Holding out – When a person is not a partner but represents or poses himself to be a partner, or knowingly permits himself to be represented as a partner, either by words on in writing or by his acts, he is called a partner by estoppel or holding out. A partner by estoppel or by holding out shall be liable to outsiders who deal with the firm on the presumption of that person is a partner in the business, even though he is not a partner. Such partners do not contribute to capital, nor do they participate in the management and also do not share profits/losses. |
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