Iowa § 486A.702 Dissociated partner’s power to bind and liability to partnership

Iowa Statutes

§ 486A.702 — Dissociated partner’s power to bind and liability to partnership

Iowa § 486A.702

Title XIIBUSINESS ENTITIES

Ch. 486AUNIFORM PARTNERSHIP ACT

This text of Iowa § 486A.702 (Dissociated partner’s power to bind and liability to partnership) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 486A.702 (2026).

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 article 9, is bound by an act of the dissociated partner which would have bound the partnership under section 486A.301 before dissociation only if at the time of entering into the transaction all of the following apply:

a.The other party reasonably believed that the dissociated partner was then a partner.

b.The other party did not have notice of the partner’s dissociation.

c.The other party is not deemed to have had knowledge under section 486A.303, subsection 5, or notice under section 486A.704, subsection 3.

2.A dissociated partner is liable to the partnership for any damage caused to the partnership arisi

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

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 article 9, is bound by an act of the dissociated partner which would have bound the
partnership under section 486A.301 before dissociation only if at the time of entering into
the transaction all of the following apply:
a. The other party reasonably believed that the dissociated partner was then a partner.
b. The other party did not have notice of the partner’s dissociation.
c. The other party is not deemed to have had knowledge under section 486A.303,
subsection 5, or notice under section 486A.704, subsection 3.
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.