Otto is a limited partner in Port Exports, a limited partnership. Otto allows his name to be used in partnership business, contributes services to the firm, and regularly advises Quinn, the general partner, on Port's management. The firm's creditors believe, based on Otto's conduct, that he is a general partner. Otto is liable for Port's obligations

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Otto's conduct has led outside parties to believe that he is a general partner, thus making him personally liable for Port's obligations to the full extent. This is known as the doctrine of estoppel, which holds that a person who holds themselves out as a general partner will be liable as such even if they are actually a limited partner. Otto's contributions and advice to the partnership only reinforce the belief that he is a general partner, making him responsible for all debts and obligations of the firm.

Otto Is a Limited Partner in Port Exports, a Limited