Sebastian was the manager of Thai Bistro, a restaurant specializing in Southeast Asian foods. Sebastian opened a bank account in Thai Bistro'sname, signing the account signature card as "owner.". Umeko, who was often at Thai Bistroand had free access to
its office, told others that she was "an owner" and "a part¬ner.". She also opened a bank account in Thai Bistro'sname, and signed the account signature card as "owner.". Sebastian told Vijay, the owner of Wong Noodles, Inc, that Umeko was a member of a partnership that owned Thai Bistro. On this basis, Wong Noodlesdelivered its goods to Thai Bistroon credit. In fact, Thai Bistrowas owned by a corporation. When the unpaid account totaled more than $10,000, Wong Noodlesfiled a suit against Umekoto collect. On what basis might Umekobe liable for the debt?
The theory under which Umekowould most likely be liable for Thai Bistro'sdebt to Wong Noodlesis partnership by estoppel.
The first requirement of this theory is a representa¬tion, by a nonpartner or by another with the nonpartner's consent, that the nonpartner is a partner. The second requirement is reliance on that representation.
In this case, Wong Noodlescould prove both elements. Both Sebastian and Umekomade representations with respect to Umeko'sstatus in relation to Thai Bistro—they both signed bank cards as "owner," Umekowas often at Thai Bistroand had free access to its office, Umekotold others that she was a "partner" in the business, which is what Sebastian also told Vijay. As for the reliance element, Wong Noodlesextended credit to Thai Bistroonly because Wong Noodlesbelieved that Thai Bistrowas owned by a partnership.
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