Text of the provision
Art. 1852. Without prejudice to the provisions of article 1848, a person who has contributed to the capital of a business conducted by a person or partnership erroneously believing that he has become a limited partner in a limited partnership, is not, by reason of his exercise of the rights of a limited partner, a general partner with the person or in the partnership carrying on the business, or bound by the obligations of such person or partnership, provided that on ascertaining the mistake he promptly renounces his interest in the profits of the business, or other compensation by way of income.
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
One who contributes capital erroneously believing he became a limited partner is not liable as a general partner if, on discovering the mistake, he promptly renounces his interest in the profits.
Related provisions
- Article 1851 — Rights of a Limited Partner.
- Article 1853 — General-and-Limited Partner.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.