lsquo A rsquo introduced lsquo B rsquo to C as his partner when infact he was not the partner and B...........

Indian Partnershoip Act (IPA) 1930 Miscellaneous Provisions

‘A’ introduced ‘B’ to C as his partner when infact he was not the partner and B stood silently and did not say anything contrary to this. On the basis of representation, C sold some goods to the firm. In default of payment, C sued the firm. In this case –

B will be held liable along with A

Only A will be liable on the basis of holding out

B knowingly permitted himself to be represented as a partner of the firm and hence, cannot escape the liability on the basis of the principle of holding out

Both (a) and (c)

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