Ron, who extended credit to the firm, seeks to hold Glenn liable as a partner. Is Glenn liable? Explain.
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Glenn refuses an invitation to become a partner of Dorothy and Cynthia in a retail grocery business. Nevertheless, Dorothy inserts an advertisement in the local newspaper representing Glenn as their partner. Glenn takes no steps to deny the existence of a partnership between them. Ron, who extended credit to the firm, seeks to hold Glenn liable as a partner. Is Glenn liable? Explain. |
Explanation
Individual G is not responsible under Revised Uniform partnership act because they did not participate in publishing the advertisement. Individual G is not responsible for denial unless they accept the advertisement.
For this reason, Individual G is not liable to publish denial of the same.
Although Uniform Partnership Act holds the same, an exception can be made based on a few cases.
As a contradiction to Revised Uniform Partnership Act, Individual G has to announce their denial as per the Uniform Partnership Act.
Verified Answer
Under Section 308 of Revised Uniform Partnership Act, Individual G cannot be held responsible as Individual G is not a partner by estoppel.
However, under uniform partnership act, Individual G may have to publish a denial of the same.
