In the scenario where a partner claims partnership status misleadingly, which statement is true about liability?

Prepare for the Partnership Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

In the situation where a partner falsely claims partnership status, the critical aspect of liability hinges on the nature of the partnership and the representations made. When analyzing the correct statement, it's important to recognize that a partner misrepresenting their status creates specific legal ramifications concerning the parties involved.

The correct answer indicates that Teodoro cannot enforce the transaction against Manuel. This is grounded in the principle of estoppel, which prevents one from claiming a legal status that they did not hold. If Manuel claims to be a partner but does so misleadingly without the consent or acknowledgment of the other partners, he cannot be held legally responsible for debts incurred in the name of a partnership to third parties who relied on his misrepresentation. This means that Teodoro, who entered into the transaction under the belief that Manuel was indeed a partner, cannot successfully enforce the transaction against Manuel, as Manuel did not have actual authority or a rightful claim to partnership at that time.

This scenario underscores the importance of clear representations and the consequences that arise from misrepresenting one's status within a partnership. Understanding the implications of partnership representations helps in recognizing the limits of liability and the protections available to those misled by such claims.

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