Texas Business Organizations Code - Section 152.504. Withdrawn Partner's Power To Bind Partnership
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§ 152.504. WITHDRAWN PARTNER'S POWER TO BIND
PARTNERSHIP. (a) The action of a withdrawn partner occurring not
later than the first anniversary of the date of the person's
withdrawal binds the partnership if the transaction would bind the
partnership before the person's withdrawal and the other party to
the transaction:
(1) does not have notice of the person's withdrawal as
a partner;
(2) had done business with the partnership within one
year preceding the date of withdrawal; and
(3) reasonably believed that the withdrawn partner was
a partner at the time of the transaction.
(b) A withdrawn partner is liable to the partnership for
loss caused to the partnership arising from an obligation incurred
by the withdrawn partner after the withdrawal date and for which the
partnership is liable under Subsection (a).
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 152.403 152.404 152.405 152.406 152.501 152.502 152.503 152.504 152.505 152.506 152.601 152.602 152.603 152.604 152.605
Last modified: August 11, 2007
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