§ 7-64-702 — Dissociated partner's power to bind and liability to partnership

Colorado § 7-64-702

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Colorado Uniform Partnership Act (1997)

Text

(1) 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 part 2 of article 90 of this title, is bound by an act of the
dissociated partner that would have bound the partnership under section 7-64-301
before dissociation only if at the time of entering into the transaction the other
party:

(a) Reasonably believed that the dissociated partner was then a partner; and

(b) Did not have notice of the partner's dissociation.

(2) 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 (1) of this
section.

Legislative History

Source: L. 97: Entire article added, p. 889, � 1, effective January 1, 1998. L. 2003: IP(1) amended, p. 2253, � 157, effective July 1, 2004.