Question

A, B and C are partners in X and Company. D represent himself as a partner in X and Company to E who on the faith of such representation extended P10,000 credit to X and Company Assuming only A and B consented to such

representation who shall be held liable to E?
a. Since E extended the P10,000 credit to X and Company a partnership liability exists thus all the partners and D are liable.
b. Only A, B and D are partners by estoppel and thus are liable pro-rata to E.
c. Only D who made the representation shall be liable to E.
d. Only partner A, B and C who benefited from the credit extended by E shall be liable to E.

Answer 1

According to the facts given, only the person who made the representation, D, would be held liable to E.

Step-by-step explanation:

In this situation, D represents himself as a partner in X and Company to E, which leads E to extend a P10,000 credit to X and Company. However, only A and B consented to this representation. So, according to the facts given, D is not actually a partner in X and Company, and therefore, D is the one responsible for making such a representation.

Therefore, the correct answer is c. Only D who made the representation shall be liable to E.