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Partner by Holding Out(Section 28 of the Indian Partnership Act, 1932)

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...