Multiple choice

Partner by holding out is also known as ______.

  1. active partner

  2. dormant partner

  3. partner by estoppel

  4. partner by stoppage

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Partner by holding out means a person represents themselves as a partner (or allows others to believe so), making them liable to third parties who relied on this representation. This is called 'partner by estoppel' in legal terms - they are estopped from denying they are not a partner.