Partner by Holding Out (Section 28 of the Indian Partnership Act, 1932) Introduction The Indian Partnership Act, 1932 defines who can be called a partner and under what conditions a person can be made liable as a partner . Normally, only those who actually agree to carry on business together are partners. But sometimes, a person appears or represents himself as a partner even when he is not. In such a case, the law treats him as a partner by holding out — meaning he is held out (shown) to the public as a partner , and therefore, he becomes liable for the firm’s acts. Definition (Section 28) According to Section 28 of the Indian Partnership Act, 1932 : “Any person who by words spoken or written, or by conduct, represents himself, or knowingly allows himself to be represented, as a partner in a firm, is liable as a partner in that firm to anyone who gives credit to the firm on the faith of such representation.” Meaning in Simple Words If a person acts like a partne...
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