Dormant partners, subject to s. 2, (English) Partner-ship Act, 1890, and the (English) Business Names Registration Act, 1916, those whose names are not known or do not appear as partners, but who nevertheless are silent partners, and partake of the profits, and thereby become partners, either absolutely to all intents and purposes, or at all events in respect to third parties. dormant partners, in strictness of language, mean those who are merely passive in the firm, whether known or unknown, in contradistinction to those who are active and conduct the business of the firm as principals. Unknown partners are properly secret partners: but in common parlance they are usually designated by the appellation of dormant partners. They are held responsible as partners, until retirement, to third parties, although they may
not be so chargeable inter se. consult Lindley
on Partnership. See PARTNERSHIP (LIMITED PARTNERSHIP) and BUSINESS NAMES REGISTRATION ACT, 1916; DISCLOSURE.
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