Sec. 34-363. Dissociated partner's power to bind and liability to partnership.
Sec. 34-363. Dissociated partner's power to bind and liability to partnership.
(a) 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
sections 34-384 to 34-391, inclusive, is bound by an act of the dissociated partner which
would have bound the partnership under section 34-322 before dissociation only if at
the time of entering into the transaction the other party: (1) Reasonably believed that
the dissociated partner was then a partner; (2) did not have notice of the partner's dissociation; and (3) is not deemed to have had knowledge under subsection (e) of section 34-324 or notice under subsection (c) of section 34-365.
(b) 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 (a) of this section.
(P.A. 95-341, S. 35, 58.)
History: P.A. 95-341 effective July 1, 1997.