1. When a person, by words spoken or written or by conduct, represents that person, or consents to another representing that person to anyone, as a partner in an existing partnership or with one or more persons not actual partners, the person is liable to any person to whom the representation has been made, who has, on the faith of the representation, given credit to the actual or apparent partnership, and if the person has made a representation or consented to its being made in a public manner that person is liable to the person, whether the representation has or has not been made or communicated to the 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, the person is liable as though the person were an actual member of the partnership.
b. When no partnership liability results, the person 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 or more persons not actual partners, the person is an agent of the persons consenting to the representation to bind them to the same extent and in the same manner as though the person 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.
[C73, 75, 77, 79, 81, § 544.16]
C93, § 486.16
Referred to in § 486.7, 486.35
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