Tom and Bill Are Partners in Tough Trucks Towing

Multiple Choice

Tom and Bill are partners in Tough Trucks Towing.James is not a partner.In dealing with Fred,James holds himself out to be a partner in Tough Trucks Towing and Fred contracts to have Tough Trucks Towing tow some vehicles for him.If Tough Trucks fails to tow the vehicles,a court may conclude that

A) a partnership by estoppel exists and James is liable to Fred.
B) no partnership exists and James is not liable to Fred.
C) a partnership by estoppel exists and Fred has all partnership rights.
D) no partnership exists,but Tom and Bill are liable to Fred.