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Legal Terms– Holding Out
Definition:
The act of representing oneself as having authority or status that one does not actually possess.
Legal Principle:
Under the doctrine of estoppel, a person who falsely claims (or allows others to believe) that they have certain powers or relationships may later be prevented from denying such claims.
A common example occurs in partnership law — someone who represents themselves as a partner in a firm may be held liable as a partner to third parties who extended credit relying on that belief.
Example:
If Mr. X tells suppliers he is a co-partner in a law firm when he is not, and the suppliers provide goods based on that belief, he may be treated as an actual partner for purposes of liability
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