New York Consolidated Laws, Partnership Law - PTR § 100. Status of person erroneously believing himself a limited partner

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.