A person allows a firm to use his name as a partner, but contributes no capital, takes no share of profits and takes no part in managing the business. What kind of partner is he usually called?

A nominal partner only lends his name to the firm, without any real interest in capital, profits or management. Because he holds himself out as a partner, he is liable under section 28 of the Indian Partnership Act, 1932 to anyone who gives credit to the firm on the faith of that representation. A sleeping partner differs: he contributes capital and shares profits but stays out of management, and is usually unknown to outsiders.