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What is meant by partner by …

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What is meant by partner by estoppel? Explain

    • Posted by Anjali Singh 4 years ago

    CBSE > Class 11 > Business Studies
    • 2 answers

    Yogita Ingle 4 years ago

    A legal, binding partnership that may occur where previously, no formal partnership agreement was in place. A person who exhibits such conduct, or says words which represent, or allow him to be represented, as a partner in any firm becomes liable to any loans or credits that are obtained by the firm. It is also known as the presumption of partnership.

    1Thank You

    .... .... 4 years ago

    The person who accepts that he is a partner in the partnership firm by his own words or conduct is known as partner by estoppel.He is liable for the debts which the firm gets because of his reputation. For example Mr.X is not a partner but he tells Mr.Y that he is a partner in a firm called ABC enterprises.Under this impression Mr.Y sells goods worth rs.10000 to the firm.Later in the firm is unable to pay the amount to Mr.Y.In this case,Mr.Y can recover the amount from Mr.X.Here Mr.X is a partner by estoppel

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