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' and 'partner by estoppel' refer to the same concept in partnership law. When someone is held out as a partner by the firm (or allows themselves to be represented as such), and a third party relies on this representation, the firm is estopped (prevented) from denying that person's partner status. This liability exists even if the person was never actually admitted as a partner.

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