A partner by holding out means a person who is not a member of firm but allows himself/herself to be represented as a partner. Such person is responsible to person who has given loan to firm on his representation because loan has been given by assuming that he/she is member.
What is meant by partner by estoppel ‘?
A partner by estoppel is a person who gives an impression to others that he/she is a partner of the firm through his/her own initiative, conduct or behaviour.
Which of the following conditions are applicable to partner by holding out?
The holding out concept is applicable when a person knowingly permits other to represent himself as a partner of the firm and does not repudiate it at the relevant time. When other represents a person as partner of a firm and he allows the same to be happened, he cannot deny the same afterwards.
