Arizona § 29-1063 Dissociated partner's liability to other persons

Arizona Statutes

§ 29-1063 — Dissociated partner's liability to other persons

Arizona § 29-1063

Title 29Arizona Revised Statutes

Ch. 5REVISED UNIFORM PARTNERSHIP ACT

Art. 7Partner's Dissociation When Business Not Wound Up

This text of Arizona § 29-1063 (Dissociated partner's liability to other persons) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 29-1063 (2026).

Text

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 disso

Free access — add to your briefcase to read the full text and ask questions with AI

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.