Dissociated partner's power to bind and liability to partnership.

Checkout our iOS App for a better way to browser and research.

(1) For two years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under part 2 of article 90 of this title, is bound by an act of the dissociated partner that would have bound the partnership under section 7-64-301 before dissociation only if at the time of entering into the transaction the other party:

(a) Reasonably believed that the dissociated partner was then a partner; and (b) Did not have notice of the partner's dissociation.

(2) A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissociated partner after dissociation for which the partnership is liable under subsection (1) of this section.

Source: L. 97: Entire article added, p. 889, § 1, effective January 1, 1998. L. 2003: IP(1) amended, p. 2253, § 157, effective July 1, 2004.


Download our app to see the most-to-date content.