35-10-620. Dissociated partner's power to bind partnership -- liability to partnership. (1) For 2 years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under 35-10-635 through 35-10-637 and 35-10-641 through 35-10-644, is bound by an act of the dissociated partner that would have bound the partnership under 35-10-301 before dissociation if the other party to the transaction:
(a) reasonably believed when entering the transaction that the dissociated partner was a partner at that time;
(b) did not have notice of the partner's dissociation; and
(c) is not considered to have had knowledge under 35-10-310(5) or notice under 35-10-622.
(2) A dissociated partner is liable to the partnership for any loss caused to the partnership arising from an obligation incurred by the dissociated partner after dissociation and for which the partnership is liable under subsection (1).
History: En. Sec. 40, Ch. 238, L. 1993.