(306) Person erroneously believing self to be limited partner
N.D. Cent. Code § 45-10.2-36
in effect45-10.2-36. (306) Person erroneously believing self to be limited partner
1. Except as otherwise provided in subsection 2, a person that makes an investment in a
business enterprise and erroneously but in good faith believes that the person has
become a limited partner in the enterprise is not liable for the obligations of the
enterprise by reason of making the investment, receiving distributions from the
enterprise, or exercising any rights of or appropriate to a limited partner, if, on
ascertaining the mistake, the person:
a. Causes an appropriate certificate of limited partnership, amendment, or
statement of correction to be signed and delivered to the secretary of state for
filing; or
b. Withdraws from future participation as an owner in the enterprise by signing and
delivering to the secretary of state for filing a statement of withdrawal under this
section.
2. A person that makes an investment described in subsection 1 is liable to the same
extent as a general partner to any third party that enters into a transaction with the
enterprise, believing in good faith that the person is a general partner, before the
secretary of state files a statement of withdrawal, certificate of limited partnership,
amendment, or statement of correction to show that the person is not a general
partner.
3. If a person makes a diligent effort in good faith to comply with subdivision a of
subsection 1 and is unable to cause the appropriate certificate of limited partnership,
amendment, or statement of correction to be signed and delivered to the secretary of
state for filing, then the person has the right to withdraw from the enterprise pursuant
to subdivision b of subsection 1 even if the withdrawal would otherwise breach an
agreement with others that are or have agreed to become co-owners of the enterprise.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t45c10-2.pdf#nameddest=45-10p2-36Fetched: 10/16/2026