§ 27 — Partner by estoppel

New York § 27

• Jurisdiction: New York
• Law PTR: Partnership
• Art. 3: Relations of Partners to Persons Dealing With the Partnership

Text

§ 27. Partner by estoppel. 1. When a person, by words spoken or\nwritten or by conduct, represents himself, or consents to another\nrepresenting him to any one, as a partner in an existing partnership or\nwith one or more persons not actual partners, he is liable to any such\nperson to whom such representation has been made, who has, on the faith\nof such representation, given credit to the actual or apparent\npartnership, and if he has made such representation or consented to its\nbeing made in a public manner he is liable to such person, whether the\nrepresentation has or has not been made or communicated to such person\nso giving credit by or with the knowledge of the apparent partner making\nthe representation or consenting to its being made.\n (a) When a partnership liability results, he is liable as though he\nwere an actual member of the partnership.\n (b) When no partnership liability results, he is liable jointly with\nthe other persons, if any, so consenting to the contract or\nrepresentation as to incur liability, otherwise separately.\n 2. When a person has been thus represented to be a partner in an\nexisting partnership, or with one or more persons not actual partners,\nhe is an agent of the persons consenting to such representation to bind\nthem to the same extent and in the same manner as though he were a\npartner in fact, with respect to persons who rely upon the\nrepresentation. Where all the members of the existing partnership\nconsent to the representation, a partnership act or obligation results;\nbut in all other cases it is the joint act or obligation of the person\nacting and the persons consenting to the representation.\n