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New York Partnership Law Section 67 - Effect Of Dissolution On Partner's Existing Liability.

Legal Research Home > New York Lawyer > Partnership > New York Partnership Law Section 67 - Effect Of Dissolution On Partner's Existing Liability.

    § 67.  Effect of dissolution on partner's existing liability.  1. The
  dissolution of the partnership does not of itself discharge the existing
  liability of any partner.
    2.  A  partner  is  discharged  from  any  existing   liability   upon
  dissolution  of  the  partnership by an agreement to that effect between
  himself,  the  partnership  creditor  and  the  person  or   partnership
  continuing  the  business;  and  such agreement may be inferred from the
  course  of  dealing  between  the  creditor  having  knowledge  of   the
  dissolution and the person or partnership continuing the business.
    3.  Where  a  person  agrees  to  assume the existing obligations of a
  dissolved partnership, the partners whose obligations have been  assumed
  shall   be  discharged  from  any  liability  to  any  creditor  of  the
  partnership who, knowing  of  the  agreement,  consents  to  a  material
  alteration in the nature or time of payment of such obligations.
    4.  The  individual property of a deceased partner shall be liable for
  those obligations of the partnership incurred while he was a partner and
  for which he was liable under section twenty-six  of  this  chapter  but
  subject to the prior payment of his separate debts.

Last modified: August 10, 2006