Question

Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the partners realized that outside capital was needed for the firm to begin operations; however, they also realized that their individual and combined credit ratings would not attract sufficient funds. In order to improve the new partnership’s ability to attract investment capital, and with the approval of Enrickson, Robertson added his friend Thompson’s name to the partnership agreement. Thompson, a well-known personality from a family of means, was not asked to be a partner and knew nothing of Robertson's and Enrickson's actions. Upon seeing Thompson's name on the partnership agreement, a local bank readily agreed to advance Robertson and Enrickson the total sum required to begin operations. The partnership has now failed, and the bank would like to hold Thompson, Robertson and Enrickson liable for the amount of the loan. Will the bank recover from Thompson, Robertson and Enrickson?

Answer 1

No the bank can’t pursued to embrace Thompson liable for the loan as Thompson isn't a business partner any more within the business and not has remained informed that his name was related to the shape as a business partner .

Here during this case Thompson isn't a companion by rule of evidence as he has not delineate himself because the business partner and has no part to play within the research of the business partnership contract. what is more he's additionally uninformed concerning his name getting used in the business.

Thus, he can't be hold liable for the loan , relatively Erickson and Oscar Robertson are going to be accused for deception or misrepresentation for mistreatment Thompson's name while not his assent and data.