If the behaviour of a person shows that he is a partner in a firm (when actually he is not ), such a person is know as __________.

nominal partner

No worries! We‘ve got your back. Try BYJU‘S free classes today!

sleeping partner

No worries! We‘ve got your back. Try BYJU‘S free classes today!

sub-partner

No worries! We‘ve got your back. Try BYJU‘S free classes today!

partner by estoppel.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D partner by estoppel.
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.

Suggest Corrections