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1, 1998).2 Section 620.735 of the Florida Statutes Annotated
(section 620.735) provides in pertinent part:
620.735. Effect of dissolution on partner's existing
liability.--
(1) The dissolution of the partnership of itself
does not discharge the existing liability of any part-
ner.
(2) A partner is discharged from any existing
liability upon dissolution of the partnership by an
agreement to that effect between himself, the part-
nership creditor and the person or partnership con-
tinuing the business. The agreement may be inferred
from the course of dealing between the creditor having
knowledge of the dissolution and the person or part-
nership continuing the business.
(3) When 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 the
obligations.
2 Petitioners maintain that
This is a situation in which the application of
Florida Statute �620.735(2) and (3) are necessary to
allow some fairness to Petitioners who seek to offset
income from the relief of liabilities with losses
incurred in Tax Year 1993.
While the fact that petitioners incurred losses in 1993 explains
why they are taking the position that they must recognize the
gain in question for that year, that fact is irrelevant to our
resolving the issue presented. See Fla. Stat. Ann. sec. 620.735
(West 1992).
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