Alabama § 10A-8A-7.03 Liability of Person Dissociated as a Partner to Other Persons

Alabama Statutes

§ 10A-8A-7.03 — Liability of Person Dissociated as a Partner to Other Persons

Alabama § 10A-8A-7.03

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-7.03 (Liability of Person Dissociated as a Partner to Other Persons) 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-7.03 (2026).

Text

(a)A person’s dissociation as a partner does not of itself discharge that person’s liability for a partnership obligation incurred before dissociation. A person dissociated as a partner is not liable for a partnership obligation incurred after dissociation, except as provided in subsection (b).

(b)A person that dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership or other surviving entity under Article 9 of this chapter or Article 8 of Chapter 1, within one year after the partner’s dissociation, only if the partner is liable for the obligation under Section 10A-8A-3.06 and at the time of enterin

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(a) A person’s dissociation as a partner does not of itself discharge that person’s liability for a partnership obligation incurred before dissociation. A person dissociated as a partner is not liable for a partnership obligation incurred after dissociation, except as provided in subsection (b).
(b) A person that dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership or other surviving entity under Article 9 of this chapter or Article 8 of Chapter 1, within one year after the partner’s dissociation, only if the partner is liable for the obligation under Section 10A-8A-3.06 and 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; and
(3) is not deemed to have had knowledge or notice under Section 10A-8A-1.03 of the person’s dissociation.
(c) By agreement with the partnership creditor and the partners continuing the business or not for profit activity, a person dissociated as a partner may be released from liability for a partnership obligation.
(d) A person dissociated as a partner is released from liability for a partnership obligation if a partnership creditor, with notice of the person’s dissociation but without the person’s consent, agrees to a material alteration in the nature or time of payment of a partnership obligation.