29-1063. Dissociated partner's liability to other persons
A. A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation incurred before dissociation. A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provided in subsection B of this section.
B. A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership pursuant to any merger permitted by law, within two years after the partner's dissociation, only if the partner is liable for the obligation under section 29-1026 and at the time of entering into the transaction the other party:
1. Relied on a reasonable belief 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.
C. By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation.
D. A dissociated partner is released from liability for a partnership obligation if a partnership creditor, with notice of the partner's dissociation but without the partner's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation.
Section: Previous 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 29-1075 NextLast modified: October 13, 2016