Which of the following is true about the effect of purported partnerships?

Question

Quizplus · Accepted Answer

Purported partnerships occur when someone holds themselves out as a partner in a business, even though no official partnership agreement exists. In such cases, the purported partner may be liable for the contracts entered into by third parties on their belief that he was actually a partner. Therefore, option C is correct. Option A is incorrect because it is not necessary that purported partners share profits of the business. Option B is incorrect because purported partners may have the authority to make contracts on behalf of the partnership, depending on the circumstances. Option D is incorrect because purported partners may be liable for the torts committed in the course of relationships entered into by third parties who believed that they were actual partners.

Which of the Following Is True About the Effect of Purported