Sec. 16. (1) When a person, by words spoken or written or by conduct, represents himself, or consents to another representing him or any one, as a partner in an existing partnership or with one (1) or more persons not actual partners, he is liable to any such person to whom such representation has been made, who has, on the faith of such representation, given credit to the actual or apparent partnership, and if he has made such representation or consented to its being made in a public manner he is liable to such person, whether the representation has or has not been made or communicated to such person so giving credit by or with the knowledge of the apparent partner making the representation or consenting to its being made.
(a) When a partnership liability results, he is liable as though he were an actual member of the partnership.
(b) When no partnership liability results, he is liable jointly with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately.
(2) When a person has been thus represented to be a partner in an existing partnership, or with one (1) or more persons not actual partners, he is an agent of the persons consenting to such representation to bind them to the same extent and in the same manner as though he were a partner in fact, with respect to persons who rely upon the representation. Where all the members of the existing partnership consent to the representation, a partnership act or obligation results; but in all other cases it is the joint act or obligation of the person acting and the persons consenting to the representation.
Formerly: Acts 1949, c.114, s.16.
Structure Indiana Code
Title 23. Business and Other Associations
Chapter 1. Uniform Partnership Act
23-4-1-3. Interpretation of Knowledge and Notice
23-4-1-4. Rules of Construction
23-4-1-5. Rules for Cases Not Provided for in Chapter
23-4-1-7. Rules for Determining Existence of Partnership
23-4-1-8. Partnership Property
23-4-1-10. Conveyance of Real Property of Partnership
23-4-1-11. Partnership Bound by Admission of Partner
23-4-1-12. Partnership Charged With Knowledge of or Notice to Partner
23-4-1-13. Partnership Bound by Partner's Wrongful Act
23-4-1-14. Partnership Bound by Partner's Breach of Trust
23-4-1-15. Nature of Partner Liability; Partnerships; Limited Liability Partnerships
23-4-1-16. Partner by Estoppel
23-4-1-17. Liability of Incoming Partner
23-4-1-18. Rules Determining Rights and Duties of Partners
23-4-1-20. Duty of Partners to Render Information
23-4-1-21. Partner Accountable as Fiduciary
23-4-1-23. Continuation of Partnership Beyond Fixed Term
23-4-1-24. Extent of Property Rights of Partner
23-4-1-25. Nature of Partner's Right in Specific Partnership Property
23-4-1-26. Nature of Partner's Interest in Partnership
23-4-1-27. Assignment of Partner's Interest
23-4-1-28. Partner's Interest Subject to Charging Order
23-4-1-29. Dissolution Defined
23-4-1-30. Partnership Not Terminated by Dissolution
23-4-1-31. Causes of Dissolution
23-4-1-32. Dissolution by Decree of Court
23-4-1-33. General Effect of Dissolution on Authority of Partner
23-4-1-34. Right of Partner to Contribution From Copartners After Dissolution
23-4-1-35. Power of Partner to Bind Partnership to Third Person After Dissolution
23-4-1-36. Effect of Dissolution on Partner's Existing Liability
23-4-1-38. Rights of Partners to Application of Partnership Property
23-4-1-39. Rights Where Partnership Is Dissolved for Fraud or Misrepresentation
23-4-1-40. Rules for Distribution
23-4-1-41. Liability of Persons Continuing Business in Certain Cases
23-4-1-42. Rights of Retiring or Estate of Deceased Partner When Business Is Continued
23-4-1-44. Limited Liability Partnerships; Legislative Intent and Policy
23-4-1-45. Limited Liability Partnerships; Registration; Notice
23-4-1-45.1. Limited Liability Partnerships; Amendment of Registration
23-4-1-45.2. Limited Liability Partnerships; Withdrawal of Registration; Filing Fee