Arizona Revised Statutes § 29-1062 Dissociated Partner's Power To Bind And Liability To Partnership

29-1062. 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 article 9 of this chapter, is bound by an act of the dissociated partner that would have bound the partnership under section 29-1021 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.

3. Is not deemed to have had knowledge under section 29-1023, subsection E or notice under section 29-1064, subsection C.

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.

Section: Previous  29-1042  29-1043  29-1044  29-1051  29-1052  29-1053  29-1061  29-1062  29-1063  29-1064  29-1065  29-1071  29-1072  29-1073  29-1074  Next

Last modified: October 13, 2016