Partnership by Estoppel in Nevada
Partnership by estoppel is a statutory recognition that someone “represents himself or herself, or consents to another representing him or her to any one, as a partner” and should therefore be held responsible as a partnership under the law. NRS 87.160(1). A partner is an association of two or more persons doing business together for a profit. NRS 87.060(1).
In other words, if I tell someone that you are my partner and you agree or do not correct me, that person has the right to presume we are acting as a partnership. In a partnership, the partners have unlimited personal liability for the acts of the partnership and the acts of their partners, so holding oneself out as a partner can have huge legal implications. NRS 87.433. Nevada’s Supreme Court has held that the consent to be treated as a partnership may be reasonably implied from the conduct of the parties.
The Moral: unless you want to have unlimited liability for the acts of that person, don’t say they are your partner.
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