Partnership by estoppel

Partnership by estoppel,

Definition of Partnership by estoppel:

  1. Legally binding partnership that may arise where, in fact, no formal partnership agreement is in effect. A person who by conduct or words represents, or allows him/herself to be represented, as a partner in a firm is liable for the credit or loans obtained by firm on the basis of such representation. Also called presumption of partnership.

Meaning of Partnership by estoppel & Partnership by estoppel Definition