Delaware § 15-703 Dissociated partner’s liability to other persons

Delaware Statutes

§ 15-703 — Dissociated partner’s liability to other persons

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

(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 under subchapter IX of this chapter, within 1 year after the partner’s dissociation, only if the partner is liable for the obligation under § 15-306 of this title and at the time of entering into the transaction the other party:

(1)Reasonably believed that the dissociate

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 under subchapter IX of this chapter, within 1 year after the partner’s dissociation, only if the partner is liable for the obligation under § 15-306 of this title and 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.

(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.

Delaware § 15-703 (Dissociated partner’s liability to other persons) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.