Single Entity and Partnerships: ‘Holding Out’
The concept of ‘holding out’ is provided for in Section 14 of the Partnership Act 1890. It is the practice of an individual leading others to believe, or allowing them to believe, that he is a partner in a particular firm. If, as a result of such actions, the individual is ‘given credit’ by those other people as being a partner in that firm, he is liable in law for the debts and obligations of that partnership.
The expression ‘given credit’ is not defined, but it should be construed as describing any transaction with the firm.