Multiple choice

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

  1. nominal partner

  2. sleeping partner

  3. sub-partner

  4. partner by estoppel
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

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 partner by estoppel and is liable to all third parties.

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