Sec. 34-364. Dissociated partner's liability to other persons.
Sec. 34-364. Dissociated partner's liability to other persons. (a) A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation
incurred before dissociation. A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provided in subsection (b) of this
section.
(b) A partner who dissociates without resulting in a dissolution and winding up of
the partnership business is liable as a partner to the other party in a transaction entered
into by the partnership, or a surviving partnership under sections 34-384 to 34-391,
inclusive, within two years after the partner's 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.
(c) By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation.
(d) A dissociated partner is released from liability for a partnership obligation if a
partnership creditor, with notice of the partner's dissociation but without the partner's
consent, agrees to a material alteration in the nature or time of payment of a partnership
obligation.
(P.A. 95-341, S. 36, 58.)
History: P.A. 95-341 effective July 1, 1997.