§ 7-12-47 - Effect of dissolution on partner's existing liability.
SECTION 7-12-47
§ 7-12-47 Effect of dissolution onpartner's existing liability. – (a) The dissolution of the partnership does not of itself discharge theexisting liability of any partner.
(b) A partner is discharged from any existing liability upondissolution of the partnership by an agreement to that effect between him orherself, the partnership creditor, and the person or partnership continuing thebusiness. An agreement may be inferred from the course of dealing between thecreditor having knowledge of the dissolution and the person or partnershipcontinuing the business.
(c) Where a person agrees to assume the existing obligationsof a dissolved partnership, the partners whose obligations have been assumedare discharged from any liability to any creditor of the partnership who,knowing of the agreement, consents to a material alteration in the nature ortime of payment of the obligations.
(d) The individual property of a deceased partner is liablefor those obligations of the partnership incurred while he or she was a partnerand for which he or she is liable under § 7-12-26, but subject to theprior payment of his or her separate debts.