Multiple choice

A person whose behaviour arouses misunderstanding that he is a partner in a firm, but actually he is not, is called

  1. nominal partner

  2. dormant partner

  3. ostensible 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 a person is called a partner by estoppel and is liable to all third parties.

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