Delaware § 15-702 Dissociated partner’s power to bind and liability to partnership

Delaware Statutes

§ 15-702 — Dissociated partner’s power to bind and liability to partnership

Delaware·Title 6·Ch. 15 DELAWARE REVISED UNIFORM PARTNERSHIP ACT·Subch. Partner’s Dissociation When Business or Affairs Not Wound Up

(a)For one year after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under subchapter IX of this chapter, is bound by an act of the dissociated partner which would have bound the partnership under § 15-301 of this title 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 and reasonably relied on such belief in entering into the transaction;

(2)Did not have notice of the partner’s dissociation; and

(3)Is not deemed to have had knowledge under § 15-303(c) of this title or notice under § 15-704(c) of this title.

(b)A dissociated partner is liable to the partnership for any

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(a) For one year after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under subchapter IX of this chapter, is bound by an act of the dissociated partner which would have bound the partnership under § 15-301 of this title 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 and reasonably relied on such belief in entering into the transaction;

(2) Did not have notice of the partner’s dissociation; and

(3) Is not deemed to have had knowledge under § 15-303(c) of this title or notice under § 15-704(c) of this title.

(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.

Delaware § 15-702 (Dissociated partner’s power to bind and liability to partnership) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.