Nominal or

Ostensible Partner.

Minor as a partner
Nominal or ostensible Partner

Such a partner neither contributes nor takes part in

business management. He does not share in the firm’s
profits or losses either. He only lends his name and
reputation for the benefit of the firm. He represents
himself or knowingly allows himself to be represented as a
partner.
A Nominal partner can be of two types.
Partner By Estoppel-
A Person who by his words or conduct represents himself as a partner
becomes liable to those who advance money to the firm based on such
representation. He cannot avoid the consequences of his previous act.
A rich man (1) is not a partner but tells (2) that he is a partner in a firm
called Luna Enterprises. On this impression (2) Sells goods worth
₹30000 to the firm. Later on, the firm is unable to pay the amount. (2)
can recover the amount from (1). Here (1) is the Partner by Estoppel.
Partner By Holding Out-
When a person is declared as a partner and he does not deny this even after being aware of it, he becomes liable to third parties who lend money or credit to a firm on the basis of such a declaration.

Suppose Luna tells (2) in the presence of (1) that (1) is a partner in the firm of Luna Enterprises. (1) does not deny it. Later on (2) gives a loan of ₹30000 to Luna Enterprise on the basis of the
impression that (1) is a partner in the firm. The firm fails to repay the loan to (2). (1) is liable to pay ₹30000 to (2). Here, (1) is a partner by holding out.
Minor as a partner
A minor is one who has not completed 18 years of age. A
minor cannot become a partner because he is not qualified to
enter into a contract but he may be admitted to the benefits
of partnership with the mutual consent of all the partners. On
being so admitted, a minor becomes entitled to a share in the
profits of the firm. He can inspect and copy the books of
accounts of the firm but he cannot take an active part in the
firm’s management. He cannot file a suit against the firm or
its partners to get his share except when he wants to
disassociate himself from the firm.
After becoming a major, the minor must give public notice
within six months if he wants to break off his connections with
the partnership firm. If he does not give such notice within six
months or if he decides to remain in the firm, he becomes liable
to an unlimited extent for the debts of the firm from the date he
was admitted to the benefits of the partnership. He also becomes
entitled to take an active part in the management of the firm’s
business
THANKYOU
ANOUSHKA LAMBAT
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