Holding out liability: representing oneself as a partner creates partner liability to creditors who relied on that representation. Section 28 provides that a person who by words or conduct represents himself, or knowingly permits himself to be represented, as a partner is liable as a partner to any one who, on the faith of that representation, gives credit to the firm, regardless of whether the represented person knew the representation reached the creditor; it also states that mere continued use of the old firm name after a partner's death does not by itself make the deceased partner's representative or estate liable for subsequent acts of the firm.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Holding out liability: representing oneself as a partner creates partner liability to creditors who relied on that representation.
Section 28 provides that a person who by words or conduct represents himself, or knowingly permits himself to be represented, as a partner is liable as a partner to any one who, on the faith of that representation, gives credit to the firm, regardless of whether the represented person knew the representation reached the creditor; it also states that mere continued use of the old firm name after a partner's death does not by itself make the deceased partner's representative or estate liable for subsequent acts of the firm.
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