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Partnership by estoppel occurs when two people hold themselves out as partners without filing the appropriate paperwork. a partner tells a third party there is

Partnership by estoppel occurs when

two people hold themselves out as partners without filing the appropriate paperwork.

a partner tells a third party there is a partnership and the third party relies on the statement.

one person tells another that they are now partners.

two people work together for a long enough time for third parties to assume there is a partnership formed.

neither partner denies the existence of a partnership when asked by a third party.

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