Question

What is meant by 'Partner by estopple'? Explain

Answer 1

Partner by estoppel is a nominal partner who accepts that he is a partner in the partnership firm by his own words or conduct or behaviour and gives an impression to others that he/she is a partner of firm. Such partners are held liable for the debts of the firm because in the eyes of the third party they are considered partners even though do not contribute capital or take part in its management.