Holding out

The Doctrine of Holding Out (Section 28, Indian Partnership Act, 1932) dictates that if a person represents themselves as a partner (or allows others to do so) and a third party gives credit to the firm relying on this, that person is legally responsible for the firm's liabilities as if they were a real partner. It is a protective measure for third parties based on the principle of estoppel, meaning the individual is "estopped" or prevented from denying their status as a partner once they have induced others to believe it.