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    Partnership - Holding Out

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    IZZAH ZAHIN
    This document discusses the legal principle of estoppel as it applies to representations of partnership. It summarizes key aspects of Section 16 of the Partnership Act: 1) A person who represents themselves as a partner or allows others to represent them as a partner will be held legally liable as a partner, if the representation was provided to someone who then relied on it in giving credit to the firm. 2) The representation can be made orally, in writing, or through conduct. It does not require an actual firm to exist. 3) Partners in the firm will only be liable if they had knowledge of the representation made on their behalf. Those who were unaware are not liable.

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    Partnership - Holding Out

    Uploaded by

    IZZAH ZAHIN
    661 views1 page
    This document discusses the legal principle of estoppel as it applies to representations of partnership. It summarizes key aspects of Section 16 of the Partnership Act: 1) A person who represents themselves as a partner or allows others to represent them as a partner will be held legally liable as a partner, if the representation was provided to someone who then relied on it in giving credit to the firm. 2) The representation can be made orally, in writing, or through conduct. It does not require an actual firm to exist. 3) Partners in the firm will only be liable if they had knowledge of the representation made on their behalf. Those who were unaware are not liable.

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    PARTNERSHIP - HOLDING_OUT

    Original Title

    PARTNERSHIP - HOLDING OUT

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    This document discusses the legal principle of estoppel as it applies to representations of partnership. It summarizes key aspects of Section 16 of the Partnership Act: 1) A person who represents themselves as a partner or allows others to represent them as a partner will be held legally liable as a partner, if the representation was provided to someone who then relied on it in giving credit to the firm. 2) The representation can be made orally, in writing, or through conduct. It does not require an actual firm to exist. 3) Partners in the firm will only be liable if they had knowledge of the representation made on their behalf. Those who were unaware are not liable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    661 views1 page

    Partnership - Holding Out

    Uploaded by

    IZZAH ZAHIN
    This document discusses the legal principle of estoppel as it applies to representations of partnership. It summarizes key aspects of Section 16 of the Partnership Act: 1) A person who represents themselves as a partner or allows others to represent them as a partner will be held legally liable as a partner, if the representation was provided to someone who then relied on it in giving credit to the firm. 2) The representation can be made orally, in writing, or through conduct. It does not require an actual firm to exist. 3) Partners in the firm will only be liable if they had knowledge of the representation made on their behalf. Those who were unaware are not liable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 1

    HOLDING OUT

    INTRODUCTION
    When a person represent himself
    by word or conduct that he is a
    partner on the strength of which
    that other person relied on the
    representation as true. Here he is
    liable and cannot later deny the
    truth of the representation. Rule of
    Estoppel applies here
    Re C & M Ashberg
    b. PROVISION
    S. 16 PA proides
    Where a person represents
    himself or allow others to
    represent him as a partner! that
    person will be hold liable as such
    proided"
    #1$ the representation is gien to
    some one
    #%$ and that someone relying on
    the representation! gies credit to
    the firm.
    &t must be noted that if "
    A represents to ' that he is a
    partner to firm (. &f the partners in
    the firm ( )new this
    representation then they are liable
    . 'ut if they don*t hae the
    )nowledge then they are not
    liable.
    #1$ Representation by himsel or by
    another person !ith that the irst
    persons "no!le#ge that he is a
    partner.
    #i$the representation can be in writing!
    oral or by conduct
    #ii$ the word +in a particular firm, in s. 16
    does not re-uire the eidence of an
    actual firm. &t is immaterial whether the
    firm e.ist or not.
    D & $ %&nny Pty 't#. V At"ins
    #iii$ the word +)nowingly suffered himself
    to be represented indicates that if a
    person is represented by someone that
    he is the partner of a firm! he must )now
    about that representation.
    /orse gies 0 situation "
    #a$ He )nows before the representation
    was made and it is going to be
    made
    #b$ He has no actual )nowledge of it
    but a R/ would hae )nown it
    #c$ He has discoered the
    misrepresentation and he failed to
    ta)e necessary step to correct it.
    ()areless* 1 is not liable
    (negligent* where 1 does not realise the
    conse-uent .1 s not liable
    (re)"less* where 1 realise the
    conse-uences but does not care about it.
    1 is liable.
    To!er Cabinet Co. 't#. V Ingram.
    #i$ the representation can be made direct
    or indirectly. Still 1 is liable.
    Eg.
    ' told ( he is a partner. ( then tell the
    ban) and the ban) gies credit to '. Still
    liable.
    Martin + ,rey
    #$ the representation must be made
    before credit is gien
    #0$ Relian)e to the representation
    the thir# party ha# a)te# on the
    strength o the representation an#
    m&st belie+e it to be tr&e.
    He does not hae to proe that if he
    )new the representation is untrue! he
    would not hae gien the credit.
    'yn)h + Sti
    $&#gell -eates & Co. + .atson
    /0C/PTION
    2he proiso to s. 16 proides"
    2hat where a deceased partner*s
    name is continued as part of the
    business after his death! that will not by
    itself bind the e.ecutor or
    administrators or estate by debts
    contracted after his death.
    #%$ /1ten#ing Cre#it
    #3ien (redit$
    +credit, is not defined in PA. H4eer /orse
    define it as incurring any liability #money$
    Martin + ,rey
    ELEMENTS TO PROVE UNDER s. 16 PA

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