Practice question
A person consents to a public holding out as partner. A claimant later gives credit but expressly admits the representation played no role in that decision. The claimant argues public representation eliminates every reliance condition as well as the need for personal communication. Which is correct?
- Publicity eliminates all statutory predicates
- Every stranger automatically becomes creditor of the apparent partner
- The claimant may create reliance by private declaration after the event
- The public-representation rule does not convert admitted nonreliance into credit given on the faith of the holding out.
- Only private representations can ever create liability
Legal references
- Civil Code, RA 386, Articles 1769 and 1825: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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