A business partner may be a commercial entity with which another commercial entity has some sort of alliance. This relationship could also be a contractual, exclusive bond during which both entities commit to not unite third parties
Importance of Partnership
Business partner relationships are important connections and resources as we conduct our jobs, plan for the longer term, and build our knowledge about products, changes, and trends. Building future business partner relationships can help us when a product or service changes or when a further product or service is required
Contract
A business partnership agreement may be a legal instrument between two or more business partners that spells out the business structure, responsibilities of every partner, capital contribution, partnership property, ownership interest, decision-making conventions, the method for one business partner to sell or leave the
1] Active Partner/Managing Partner
An active partner is additionally referred to as an Ostensible Partner. because the name suggests he takes active participation within the firm and therefore the running of the business. He carries on the daily business on behalf of all the partners. This suggests he acts as an agent of all the opposite partners on each day to day basis and with regards to all or any ordinary business of the firm.
Hence when a lively partner wishes to retire from the firm he must provide public notice about an equivalent. this may absolve him of the acts done by other partners after his retirement. Unless he gives a public notice he is going to be responsible for all acts even after his retirement.
2] Dormant/Sleeping Partner
This is a partner that doesn't participate within the daily functioning of the partnership firm, i.e. he doesn't take a lively part within the daily activities of the firm. he's however bound by the action of all the opposite partners.
He will still share the profits and losses of the firm and even usher in his share of capital like all other partners. If such a dormant partner retires he needn't provides public notice of an equivalent.
3] Nominal Partner
This is a partner that doesn't have any real or significant interest within the partnership. So, in essence, he's only lending his name to the partnership. He won't make any capital contributions to the firm, then he won't have a share within the profits either. But the nominal partner is going to be susceptible to outsiders and third parties for acts done by the other partners.
4] Partner by Estoppel
If an individual holds bent another that he's a partner of the firm, either by his words, actions or conduct then such a partner cannot deny that he's not a partner. This basically means albeit such an individual isn't a partner he has represented himself intrinsically, then he becomes partner by estoppel or partner by holding out.
5] Partner in Profits Only
This partner will only share the profits of the firm, he won't be responsible for any liabilities. Even when handling third parties he are going to be responsible for all acts of profit only, he will share none of the liabilities.
6] Minor Partner
A minor can't be a partner of a firm consistent with the Contract Act. However, a partner are often admitted to the advantages of a partnership if all partner gives their consent for an equivalent . He will share profits of the firm but his liability for the losses are going to be limited to his share within the firm.
