Q Difference between nominal partner and partner by holding out?
Nominal partner is a partner who allows the use of his/her name by a firm but does not contribute to its capital. He does not share the profits or losses of the firm. On the other hand, A person can be regarded as a 'partner by estoppel', if he or she through his/her actions or behaviour, leaves an impression on third parties that he or she is a partner in a particular firm. This means that if a person behaves in a manner that makes third parties consider this individual as one of the actual partners, then he or she is regarded as a ‘partner by estoppel’.