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A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is a
- a)Sleeping partner
- b)Sub Partner
- c)Dormant partner
- d)Partner by estoppel or Holding out
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A introduces B to C as a partner in his firm. B, in fact is not a part...
Partner by Estoppel or Holding Out
When A introduced B to C as a partner in his firm, B did not deny this fact. This creates a situation of "holding out" or "estoppel." This means that B is held liable as a partner, even though he is not actually a partner, because he allowed A to hold him out as one.
Explanation
When a person is held out by a partner or a firm as a partner, they are considered a partner by estoppel. This means that they are held liable for the debts and obligations of the firm, even if they are not a partner in reality. This principle is based on the legal principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done.
In this case, B did not deny being a partner when A introduced him to C. Therefore, C assumed that B was a partner and advanced a loan to A. When A failed to repay the loan, C held B liable for the repayment of the loan.
Conclusion
Partner by estoppel or holding out is a legal principle used to hold a person liable as a partner, even if they are not actually a partner. It is based on the principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done. In this case, B allowed A to hold him out as a partner, and therefore, C held him liable for the repayment of the loan.
When A introduced B to C as a partner in his firm, B did not deny this fact. This creates a situation of "holding out" or "estoppel." This means that B is held liable as a partner, even though he is not actually a partner, because he allowed A to hold him out as one.
Explanation
When a person is held out by a partner or a firm as a partner, they are considered a partner by estoppel. This means that they are held liable for the debts and obligations of the firm, even if they are not a partner in reality. This principle is based on the legal principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done.
In this case, B did not deny being a partner when A introduced him to C. Therefore, C assumed that B was a partner and advanced a loan to A. When A failed to repay the loan, C held B liable for the repayment of the loan.
Conclusion
Partner by estoppel or holding out is a legal principle used to hold a person liable as a partner, even if they are not actually a partner. It is based on the principle of estoppel, which prevents a person from denying or contradicting something they have previously said or done. In this case, B allowed A to hold him out as a partner, and therefore, C held him liable for the repayment of the loan.
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A introduces B to C as a partner in his firm. B, in fact is not a part...
A person who by conduct or words represents, or allows him/herself to be represented, as a partner in a firm is liable for the credit or loans obtained by firm on the basis of such representation. Also called the partner by estople.
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A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer?
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A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer?.
A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer?.
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ample number of questions to practice A introduces B to C as a partner in his firm. B, in fact is not a partner but did not deny the fact. C advanced a loan to A, which he (A) could not pay back. C held B liable for repayment of loan because: B is aa)Sleeping partnerb)Sub Partnerc)Dormant partnerd)Partner by estoppel or Holding outCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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