A person who is not really a partner in a business, is described as partner by holding out. Then he must at once deny it when he comes to know about it. If he keeps quiet, then he is liable to persons who do business with that partnership believing that he is also a partner. Such a person is called partner by holding out.

When a person makes an arrangement with a partner to share his profit, he is known as a sub-partner. Such a sub-partner has no rights against the firm, as he is not liable for the debts of the firm.

Secret partner is one whose name is not disclosed to outsiders. The position of secret partner lies between active and sleeping partner. He can take part in the working of the business. He is not known to the public as a partner. He has the same rights and liabilities as that of other partners.

A person may not be really a partner in the business. But by his behaviour he makes outsiders believe that he is a partner in the business. Then, he is liable to such outsiders who advance money to the firm or enter into a contract under such false belief. Such a person is known as 'partner by estoppel'. He cannot later on deny that he is not a partner.

He is a partner who neither contributes capital nor takes any part in the management of the firm. He lends his name to be used as partner in the business to increase the reputation of the firm. They are not eligible for a share in the profit. They are also liable to the creditors for the debts of the firm.