358.160. Partner by estoppel.

Partner by estoppel.

358.160. 1. When a person, by words spoken or written or byconduct, represents himself, or consents to another representinghim to anyone, as a partner in an existing partnership or withone or more persons not actual partners, he is liable to any suchperson to whom such representation has been made, who has, on thefaith of such representation, given credit to the actual orapparent partnership, and if he has made such representation orconsented to its being made in a public manner he is liable tosuch person, whether the representation has or has not been madeor communicated to such person so giving credit by or with theknowledge of the apparent partner making the representation orconsenting to its being made.

(1) When a partnership liability results, he is liable asthough he were an actual member of the partnership;

(2) When no partnership liability results, he is liablejointly with the other persons, if any, so consenting to thecontract or representation as to incur liability, otherwiseseparately.

2. When a person has been thus represented to be a partnerin an existing partnership, or with one or more persons notactual partners, he is an agent of the persons consenting to suchrepresentation to bind them to the same extent and in the samemanner as though he were a partner in fact, with respect topersons who rely upon the representation. Where all the membersof the existing partnership consent to the representation, apartnership act or obligation results; but in all other cases itis the joint act or obligation of the person acting and thepersons consenting to the representation.

(L. 1949 p. 506 § 16)