State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_59 > GS_59-46

§59‑46.  Partner by estoppel.

(a)        When a person, bywords spoken or written, by conduct, or by contract, represents himself, orconsents to another representing him to anyone, as a partner in an existingpartnership or with one or more persons not actual partners, he is liable toany such person to whom such representation has been made, who has, on thefaith of such representation, given credit to the actual or apparentpartnership, and if he has made such representation or consented to its beingmade in a public manner, he is liable to such person, whether therepresentation has or has not been made or communicated to such person sogiving credit by or with the knowledge of the apparent partner making therepresentation or consenting to its being made.

(1)        When a partnershipliability results, he is liable as though he were an actual member of thepartnership.

(2)        When no partnershipliability results, he is liable jointly with the other persons, if any, soconsenting to the contract or representation as to incur liability, otherwiseseparately.

(b)        When a person hasbeen thus represented to be a partner in an existing partnership, or with oneor more persons not actual partners, he is an agent of the persons consentingto such representation to bind them to the same extent and in the same manneras though he were a partner in fact, with respect to persons who rely upon therepresentation. Where all the members of the existing partnership consent tothe representation, a partnership act or obligation results; but in all othercases it is the joint act or obligation of the person acting and the personsconsenting to the representation. (1941, c. 374, s. 16; 1975,c. 732.)