A person who is not a partner in a firm but knowingly allows himself to be represented as a partner in a firm is called _______a)Partner by holding outb)Sleeping partnerc)Active partnerd)Nominal partnerCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Option 'b' is correct

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

Answer

A person who is not a partner in a firm but knowingly allows himself to be represented as a partner in a firm is called Partner by holding out.

Explanation:
When it comes to partnership in a firm, it is important to clearly define the roles and responsibilities of each partner. However, sometimes individuals who are not actually partners in a firm may allow themselves to be represented as partners. This is known as 'holding out' and the person who does so is referred to as a 'partner by holding out.' Let's understand this in more detail.

1. Partner by holding out:
- A partner by holding out is someone who is not formally a partner in a firm but presents themselves as one.
- They may give others the impression that they are a partner by using the firm's name, representing the firm in business transactions, or allowing others to believe they have the authority to act on behalf of the firm.
- This individual may not have any legal or financial obligations or rights associated with being a partner.
- However, they may be held liable for any actions or obligations they undertake while representing themselves as a partner.

2. Key characteristics:
- The person knowingly allows themselves to be represented as a partner.
- They may use the firm's name, letterhead, or any other means to create the impression that they are a partner.
- They may engage in business transactions on behalf of the firm, leading others to believe they have the authority to act on behalf of the firm.
- The person may have no actual ownership or control over the firm.

3. Legal implications:
- The concept of a partner by holding out is important from a legal perspective.
- Any person who represents themselves as a partner may be held liable for the firm's debts and obligations.
- They may also be held responsible for any misrepresentations or fraudulent activities conducted while presenting themselves as a partner.
- The person may have to bear the legal consequences of their actions, even if they were not formally a partner in the firm.

4. Protection and prevention:
- To avoid potential legal complications, firms should have clear partnership agreements that outline the rights and responsibilities of each partner.
- It is important for partners to be vigilant and ensure that no one is falsely representing themselves as a partner.
- Regular communication and transparency within the firm can help prevent situations where someone may hold themselves out as a partner.

In conclusion, a person who is not a partner in a firm but knowingly allows himself to be represented as a partner in a firm is called a partner by holding out. This individual may engage in business transactions and create the impression that they have the authority to act on behalf of the firm, even though they have no legal or financial obligations or rights associated with being a partner.

Answer

Partner by holding out (Section 28)

Partnership by holding out is also called as a partnership by estoppel. This is when an individual holds himself out as a partner or allows others to do so, the person is then stopped from denying the character he has assumed and upon the faith of which creditors may be presumed to have acted. When an individual represents himself or knowingly permits himself, to be represented as a partner in a partnership firm (when in fact he is not) he is liable, like a partner in the firm to anyone who on the faith of such representation, had given credit to the firm.

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