Illinois § 702

Illinois Statutes

§ 702

Illinois § 702

JurisdictionIllinois

TopicBUSINESS AND EMPLOYMENT

Ch. 805BUSINESS ORGANIZATIONS

Act 805 ILCS 206/Uniform Partnership Act (1997).

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

This text of Illinois § 702 is published on Counsel Stack Legal Research, covering Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

805 Ill. Comp. Stat. 702 (2026).

Text

Dissociated partner's power to bind and liability to partnership.

(a)For 2 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 of this Act, is bound by an act of the dissociated partner which would have bound the partnership under Section 301 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;

(2)did not have notice of the partner's dissociation; and (3) is not deemed to have had knowledge under Section 303(e) or notice under Section 704(c).

(b)A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an o

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Dissociated partner's power to bind and liability to partnership. (a) For 2 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 of this Act, is bound by an act of the dissociated partner which would have bound the partnership under Section 301 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; (2) did not have notice of the partner's dissociation; and (3) is not deemed to have had knowledge under Section 303(e) or notice under Section 704(c). (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.