Arizona § 29-1062 Dissociated partner's power to bind and liability to partnership

Arizona Statutes

§ 29-1062 — Dissociated partner's power to bind and liability to partnership

Arizona·Title 29 Arizona Revised Statutes·Ch. 5 REVISED UNIFORM PARTNERSHIP ACT·Art. 7 Partner's Dissociation When Business Not Wound Up

A.For two years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under article 9 of this chapter, is bound by an act of the dissociated partner that would have bound the partnership under section 29-1021 before dissociation only if at the time of entering into the transaction the other party:

1.Reasonably believed 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.

B.A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissoc

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A. For two years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under article 9 of this chapter, is bound by an act of the dissociated partner that would have bound the partnership under section 29-1021 before dissociation only if at the time of entering into the transaction the other party:

1. Reasonably believed 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.

B. A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissociated partner after dissociation for which the partnership is liable under subsection A of this section.

Arizona § 29-1062 (Dissociated partner's power to bind and liability to partnership) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.