(a) For two years after a partner dissociates without the dissociation resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under AS 32.06.905 - 32.06.908, is bound by an act of the dissociated partner that would have bound the partnership under AS 32.06.301 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 considered to have had knowledge under AS 32.06.303 (e) or notice under AS 32.06.704 (c).
(b) A dissociated partner is liable to the partnership for damage that is caused to the partnership by an obligation incurred by the dissociated partner after dissociation and for which the partnership is liable under (a) of this section.
Section: Previous 32.06.701 32.06.702 32.06.703 32.06.704 32.06.705 NextLast modified: November 15, 2016