What is the differecnce between Partner by Estoppel and Partner by Holding Out?
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A partner by estoppel is someone who is not a partner of a firm, but allows others to think that he is a partner, through his behaviour or conduct.
A partner by holding out is someone who is not a partner of a firm, but knowingly allows the firm to project to others that he is a partner of the firm.
In both cases, such people are liable for debts of the firm.
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The person who accepts that he is a partner in the partnership firm by his own words or conduct is known as Nominal Partner of Estoppel.
The partner who does not call himself as a partner in firm but who does not object when others call him as a partner in the firm then he is called Nominal Partner by Holding Out.
Hope it helps.
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