§ 7-12-27 - Partner by estoppel.
SECTION 7-12-27
§ 7-12-27 Partner by estoppel. – (a) When a person, by words spoken or written or by conduct, represents him orherself, or consents to another representing him or her to any one, as apartner in an existing partnership or with one or more persons not actualpartners, he or she is liable to any person to whom the representation has beenmade, who has, on the faith of the representation, given credit to the actualor apparent partnership, and if he or she has made a representation orconsented to its being made in a public manner he or she is liable to theperson, whether the representation has or has not been made or communicated tothe person giving credit by or with the knowledge of the apparent partnermaking the representation or consenting to its being made.
(1) When a partnership liability results, he or she is liableas though he or she were an actual member of the partnership.
(2) When no partnership liability results, he or she isliable jointly with the other persons, if any, so consenting to the contract orrepresentation as to incur liability, otherwise separately.
(b) When a person is represented to be a partner in anexisting partnership, or with one or more persons not actual partners, he orshe is an agent of the persons consenting to the representation to bind them tothe same extent and in the same manner as though he or she were a partner infact, with respect to persons who rely on the representation. Where all themembers of the existing partnership consent to the representation, apartnership act or obligation results; but in all other cases it is the jointact or obligation of the person acting and the persons consenting to therepresentation.