Alabama § 10A-8A-8.05 Liability After Dissolution of Partner and Person Dissociated as Partner; Other Partners, and Persons Dissociated as Partners

Alabama Statutes

§ 10A-8A-8.05 — Liability After Dissolution of Partner and Person Dissociated as Partner; Other Partners, and Persons Dissociated as Partners

Alabama § 10A-8A-8.05

Title 10AAlabama Business and Nonprofit Entities Code

Ch. 8AAlabama Partnership Law

Art. 8Dissolution and Winding Up

This text of Alabama § 10A-8A-8.05 (Liability After Dissolution of Partner and Person Dissociated as Partner; Other Partners, and Persons Dissociated as Partners) 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-8.05 (2026).

Text

(a)If a partner having knowledge of the dissolution causes a partnership to incur an obligation under Section 10A-8A-8.04(a) by an act that is not appropriate for winding up the partnership’s business or not for profit activity, the partner is liable:

(1)to the partnership for any damage caused to the partnership arising from the obligation; and

(2)if another partner or a person dissociated as a partner is liable for the obligation, to that other partner or person for any damage caused to that other partner or person arising from the liability.

(b)If a person dissociated as a partner causes a partnership to incur an obligation under Section 10A-8A-8.04(b), the person is liable:

(1)to the partnership for any damage caused to the partnership arising from the obligation; and

(2)if a par

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(a) If a partner having knowledge of the dissolution causes a partnership to incur an obligation under Section 10A-8A-8.04(a) by an act that is not appropriate for winding up the partnership’s business or not for profit activity, the partner is liable:
(1) to the partnership for any damage caused to the partnership arising from the obligation; and
(2) if another partner or a person dissociated as a partner is liable for the obligation, to that other partner or person for any damage caused to that other partner or person arising from the liability.
(b) If a person dissociated as a partner causes a partnership to incur an obligation under Section 10A-8A-8.04(b), the person is liable:
(1) to the partnership for any damage caused to the partnership arising from the obligation; and
(2) if a partner or another person dissociated as a partner is liable for the obligation, to the partner or other person for any damage caused to the partner or other person arising from the liability.
(c) A person dissociated as a partner is not liable under subsection (b) if:
(1) the last sentence of Section 10A-8A-8.03(a) permits the person to participate in winding up; and
(2) the act that causes the partnership to be bound under Section 10A-8A-8.04(b) is appropriate for winding up the partnership’s business or not for profit activity.