N.Y. Partnership Law § 27: Partner by estoppel

§ 27. Partner by estoppel. 1. When a person, by words spoken or

written or by conduct, represents himself, or consents to another

representing him to any one, as a partner in an existing partnership or

with one or more persons not actual partners, he is liable to any such

person to whom such representation has been made, who has, on the faith

of such representation, given credit to the actual or apparent

partnership, and if he has made such representation or consented to its

being made in a public manner he is liable to such person, whether the

representation has or has not been made or communicated to such person

so giving credit by or with the knowledge of the apparent partner making

the representation or consenting to its being made.

(a) When a partnership liability results, he is liable as though he

were an actual member of the partnership.

(b) When no partnership liability results, he is liable jointly with

the other persons, if any, so consenting to the contract or

representation as to incur liability, otherwise separately.

2. When a person has been thus represented to be a partner in an

existing partnership, or with one or more persons not actual partners,

he is an agent of the persons consenting to such representation to bind

them to the same extent and in the same manner as though he were a

partner in fact, with respect to persons who rely upon the

representation. Where all the members of the existing partnership

consent to the representation, a partnership act or obligation results;

but in all other cases it is the joint act or obligation of the person

acting and the persons consenting to the representation.