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    Question

    The Doctrine of Holding out is mentioned in:

    A Section 25 of the Indian Partnership Act Correct Answer Incorrect Answer
    B Section 28 of the Indian Partnership Act Correct Answer Incorrect Answer
    C Section 29 of the Indian Partnership Act Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    The concept of тАШHolding OutтАЩ is merely an application of the principle of estoppel, which in itself is a rule of evidence wherein a person is prevented or estopped from denying a statement he made or existence of facts that he makes another person believe. Holding out refers to a course of action or omission which leads others to believe that the person possesses an authority which in fact he doesnтАЩt.┬а In simple terms, if a person represents or knowingly permits others that he is a partner of a particular firm, and some other person carried on some transaction believing him to be a partner of the firm, then he is estopped from denying this representation later on.┬а The concept of holding out has been provided under section 28 of the Indian Partnership Act, 1932 and section 29 of Limited Liability Partnership Act, 2008. These sections state that a person is held liable as a partner by holding out if the given conditions are fulfilled.

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