Partnership by estoppel applies only when there is no partnership agreement in place; when there is a written partnership agreement, partners not named in the agreement can deny they are partners.

Partnership by Estoppel

A legal doctrine where a person acts or is treated as if they are a partner in a business, even though no formal partnership exists, leading to liability.

Written Partnership Agreement

A legal document outlining the terms, responsibilities, and profit-sharing mechanisms among partners in a business.