Alabama § 10A-8A-7.02 Power to Bind and Liability of Person Dissociated as a Partner

Alabama Statutes

§ 10A-8A-7.02 — Power to Bind and Liability of Person Dissociated as a Partner

Alabama § 10A-8A-7.02

Title 10AAlabama Business and Nonprofit Entities Code

Ch. 8AAlabama Partnership Law

Art. 7Person’s Dissociation as a Partner When Business or Not for Profit Activity Not Wound Up

This text of Alabama § 10A-8A-7.02 (Power to Bind and Liability of Person Dissociated as a Partner) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 10A-8A-7.02 (2026).

Text

(a)For one year after a person dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity, the partnership, including a surviving partnership or other surviving entity under Article 9 of this chapter and Article 8 of Chapter 1, is bound by an act of the person dissociated as a partner which would have bound the partnership under Section 10A-8A-3.01 before dissociation only if at the time of entering into the transaction the other party:

(1)reasonably believed that the person dissociated as a partner was then a partner and reasonably relied on such belief in entering into the transaction;

(2)did not have notice of the person’s dissociation as a partner; and

(3)is not deemed to have had knowledge or notice under Secti

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(a) For one year after a person dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity, the partnership, including a surviving partnership or other surviving entity under Article 9 of this chapter and Article 8 of Chapter 1, is bound by an act of the person dissociated as a partner which would have bound the partnership under Section 10A-8A-3.01 before dissociation only if at the time of entering into the transaction the other party:
(1) reasonably believed that the person dissociated as a partner was then a partner and reasonably relied on such belief in entering into the transaction;
(2) did not have notice of the person’s dissociation as a partner; and
(3) is not deemed to have had knowledge or notice under Section 10A-8A-1.03.
(b) A person dissociated as a partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the person dissociated as a partner after dissociation for which the partnership is liable under subsection (a).