Difference between estoppel and holding out partners
Answers
Answer:
difference between them
Explanation:
Partner by Estoppel
Partners by Estoppel is a person who represents himself/herself as a partner of a firm through his/her own conduct or behaviour or attitude. Such partners are held liable for any credits or debts obtained by such representation. In short, such partners cannot deny being a partner if he/she represents himself/herself as a partner of the firm.
Partner by Holding Out
Partner by Holding Out is a person who is not a partner in a firm but intentionally or deliberately allows himself/herself to be represented as a partner of the firm. Such partners are held liable to the outsiders for any credit or debts extended to the firm on the basis of such representation. Such a partner can refused to be a partner of a firm immediately by issuing his/her denial and describing his/her position that he/she is not a partner on such representation. But if he/she remain silent on such representation then he/she would be held liable to the third parties.
Explanation:
a partner by estoppel is someone who is not a partner of a firm but allows other to think that he is a partner, through his behaviour or conduct.
a partner by holding out someone who is not a partner of a firm , but knowingly allows the firm to project to other that he is a partner of the firm