People liable by holding out
18 People liable by holding out
Subsection (2) applies if a person (the apparent partner)—
represents themself as a partner in a firm other than an incorporated limited partnership by words (whether spoken or written) or conduct; or
knowingly allows themself to be represented as a partner in a firm other than an incorporated limited partnership.
The apparent partner is liable as a partner in the firm to anyone who has, because of the representation, given credit to the firm, whether the representation has or has not been made or communicated to the person giving credit by or with the knowledge of the apparent partner.
Subsection (4) applies if a person (the apparent general partner)—
represents themself as a general partner in an incorporated limited partnership by words (whether spoken or written) or conduct; or
knowingly allows themself to be represented as a general partner in an incorporated limited partnership.
The apparent general partner is liable as a general partner in the partnership to anyone who has, because of the representation, given credit to the partnership, whether the representation has or has not been made or communicated to the person giving credit by or with the knowledge of the apparent general partner.
If, after the death of a partner in a firm, the firm’s business is continued in the old firm name, the continued use of that name or the name of the dead partner as part of that name does not, of itself, make the partner’s legal personal representatives or the partner’s estate or effects liable for the firm’s debts contracted after the partner’s death.
The statute text is free to read above. View Pro plans to unlock the case-law research tools for each provision.