Judy believed that Ray and Don were partners in an automotive repair business.Ray and Don were not partners.Ray owned the business as a sole proprietor.Ray,however,allowed Don,his unemployed brother-in-law,to be around the business.When Judy was having her car repaired,Ray said,"My partner here,Don,will give you a ride to work this morning so you can leave your car here.He will give you a ride back here after work,and your car will be done." Judy allowed Don to drive her to work.While riding with Don,he accidentally ran a stop light and caused an accident.Judy was hurt and claims that both Don and Ray are liable to her.Is she right?

Question

Quizplus · Accepted Answer

This situation is an example of a partnership by estoppel, where someone represents another as their partner, leading third parties to believe in the existence of a partnership. In this case, Ray's introduction of Don as his partner led Judy to believe that Don was indeed Ray's partner, making both potentially liable for the accident.

Judy Believed That Ray and Don Were Partners in an Automotive