wiz-icon
MyQuestionIcon
MyQuestionIcon
8
You visited us 8 times! Enjoying our articles? Unlock Full Access!
Question

If the behaviour of a person arouses misunderstanding that he is a partner in a firm(when actually he is not), such a person is estopped from later on denying the liabilities for the acts of the firm. Such person is called ________ and is liable to all third parties.

A
Sleeping partner
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Partner by estoppel
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Working partner
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Sub-partner
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Partner by estoppel
According to the Partnership Act, a partner by estoppel refers to the partner who verbally or in written or through some conduct represents himself or knowingly permits himself to be represented as a partner in a firm and taking advantage of the goodwill of the firm. These kind of partners are liable to all the third parties arose due to them.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Types of Partners , Partnership and Companies
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon