Partner by estoppel

Definition : A person is considered through his/ her own

initiative he/she gives an impression to others that he/she is a
partner.

Estoppel is the rule of law that when a person by act or words,

gives another person reason to believe a certain set of facts
upon which that person takes action, he/she cannot later deny
those facts. So, a partner by estoppel would be one who had
entered into a business relationship with another for the
intention of making a profit without there being any discussion
of a partnership being formed but who shared the profits and
expenses and the expertise of the business with the other
person as though it was a partnership. The other person would
be estopped in denying that there was a partnership
Legally binding partnership that may arise where, in fact, no
formal partnership agreement is in effect. A person who by
conduct or words represents, or allows him/herself to be
represented, as a partner in a firm is liable for the credit or
loans obtained by firm on the basis of such representation. Also
called presumption of partnership.

Four elements must be present for the courts to use

promissory estoppel. Which are the four elements of
promissory estoppel?

-An existing promise

-made with expectation
-and justifiably relied upon substantially
-To the injury of the promisee should the promise not be
enforced
In the typical situation, no detriment or benefit is given by one
of the parties to the contract. Under the bargain theory of
consideration, there would be no contract because of lack of
mutuality of obligation.