i. Sleeping partner contributes capital and shares in the profits or losses of the firm but does not take part in the management of the business.
ii. He may not be known as a partner to the outsiders; yet he is liable to third parties to an unlimited extent às any other partner.
iii. It is also known as Dormant partner.

Joint and Several liabilities:
Every partner is jointly and severally liable for all acts of the firm. It means that in case the assets are inadequate for meeting the claims of creditors, even their personal properties should be made available. The creditors can recover their claims from all the partners.

According to Prof.Haney, "The relations which exist between persons, competent to make contracts, who agree to carry on a lawful business in common with a view to private gain".
According to Spiegel, "Partnership has two or more members each of whom is responsible for the obligatory requirements of the partnership. Each of the partners may bind the others and the assets of the partners may be taken for debts of partnership".

1. The Joint Hindu Family Business is a distinct form of organisation peculiar to India.
2. Joint Hindu Family Firm is created by the operation of law.
3. It does not have any separate and distinct legal entity from that of its members.
4. The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act.
5. The membership in this form of business organisation can be acquired only by birth.
6. The head of the Joint Hindu Family business is known as 'KARTA'.

Contents of Partnership Deed:
a) Name:
Name of the Firm.
b) Nature of Business:
Nature of the proposed business to, be carried on by the partners.
c) Duration of Partnership:
Duration of the partnership business whether it is to be run for a fixed period of time or whether it is to be dissolved after completing a particular venture.
d) Capital Contribution:
The capital is to be contributed by the partners. It must be remembered that capital contribution is not necessary to become a partner for one who contribute his organising power, business acumen, managerial skill, etc., instead of capital.
e) Withdrawal from the Firm:
The amount that can be withdrawn from the firm by each partner
f) Profit/Loss Sharing:
The ratio in which the profits or losses are to be shared. If the profit sharing ratio is not specified in the deed, all the partners must share the profits and bear the losses equally.
g) Interest on Capital:
Whether any interest is to be allowed on capital and if so, the rate of interest. If the deed is silent on interest on capital, the rules for interest on capital in partnership act will take effect.
h) Rate of Interest on Drawing:
Whether any interest is to be allowed on drawing, the rate of interest is to be specified.
i) Loan from Partners:
Whether loans can be accepted from the partners and if so the rate of interest payable there on.
j) Account Keeping:
Maintenance of accounts and audit.
k) Salary and Commission to Partners:
Amount of salary or commission payable to partners for their services. (Unless this is specifically provided, no partner is entitled to any salary).
l) Retirement:
Matters relating to retirement of a partner. The arrangement to be made for paying out the amount due to a retired or deceased partner must also be stated.
m) Goodwill Valuation:
Method of valuing goodwill on the admission, death or retirement of a partner.
n) Distribution of Responsibility:
The work that is entrusted to each partner is better stated in the deed itself.
o) Dissolution Procedure:
Procedure for dissolution of the firm and the mode of settlement of accounts thereafter.
p) Arbitration of Dispute:
Arbitration in case of disputes among partners. The deed should provide the method for settling disputes or difference of opinion. This clause will avoid costly litigations.