HopefullyInLawSchool
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Simple English definitions for legal terms
implied partnership
Read a random definition: extrajudicial admission
A quick definition of implied partnership:
An implied partnership is when two or more people work together to make money, but they never officially agreed to be partners. This can happen when they act like partners and other people believe they are partners. If someone relies on this belief and gives the partnership credit, the people involved can be held responsible for paying back the credit.A more thorough explanation:
An implied partnership is a type of partnership that is created by law when one or more individuals represent themselves as partners to a third party who relies on that representation. This type of partnership is also known as a partnership by estoppel.
For example, if two individuals operate a business together and one of them introduces the other as a partner to a customer, the customer may assume that they are both partners. If the customer extends credit to the business based on this assumption, the individual who was introduced as a partner may be held liable for the debt, even if they were not actually a partner.
Another example of an implied partnership is when a group of individuals work together on a project and share the profits. Even if they did not formally agree to create a partnership, their actions may be interpreted as creating an implied partnership.