Seema owns a Real Estate business and is well known for her work. Her friend Reema was planning to
buy a property for her business and requested Seema to accompany her to the business meeting
scheduled for the property deal. During the meeting, Seema gave an impression to the seller that she
was also a partner in Reema’s business and relying on her goodwill the seller agreed to accept the
payment for the property in a deferred mode. Identify the type of partner Seema is being described as
in the above lines.
(a) Active partner (b) Partner by estoppel
(c) Sleeping partner (d) Nominal partner
Answers
Seema is being described as a Nominal partner.
Sleeping partner- is the one who doesn't take any active part in the business despite contributing capital to the business.
•Active partner- He as the word "active" means participates actively in the business and is liable for both profit and loss.
•Partner by estoppel- is someone who assumed as a partner by his own account without having to contribute capital.
•Nominal partner- is the one who's goodwill brings advantage to the owner of business without having to contribute capital
Answer:
(b) Partner by estoppel
Explanation:
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.
she herself gave an Impression to the seller that she was also a partner in Reema's business.