486A.702 - DISSOCIATED PARTNER'S POWER TO BIND AND LIABILITY TO PARTNERSHIP.
486A.702 DISSOCIATED PARTNER'S POWER TO BIND AND LIABILITY TO PARTNERSHIP. 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 article 9, is bound by an act of the dissociated partner which would have bound the partnership under section 486A.301 before dissociation only if at the time of entering into the transaction all of the following apply: a. The other party reasonably believed that the dissociated partner was then a partner. b. The other party did not have notice of the partner's dissociation. c. The other party is not deemed to have had knowledge under section 486A.303, subsection 5, or notice under section 486A.704, subsection 3. 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.
Section History: Recent Form 98 Acts, ch 1201, §34, 79, 82 Referred to in § 486A.701, 486A.704, 486A.906