Montana § 35-10-621 Dissociated Partner's Liability To Other Persons

Montana Statutes

§ 35-10-621 — Dissociated Partner's Liability To Other Persons

Montana § 35-10-621

Title 35CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

Ch. 10PARTNERSHIPS IN GENERAL

Part 6Dissolution and Winding Up

This text of Montana § 35-10-621 (Dissociated Partner's Liability To Other Persons) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 35-10-621 (2026).

Text

35-10-621 . Dissociated partner's liability to other persons.

(1)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 provided in subsection (2).

(2)A partner who dissociates without resulting in a dissolution and winding up of the partnership business is personally liable as a partner to the other party as the result of a partnership obligation incurred in connection with a transaction entered into by the partnership or a surviving partnership under 35-10-635 through 35-10-637 and 35-10-641 through 35-10-644 within 2 years after the partner's dissociation only if the other party to the transaction:

(a)

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35-10-621 . Dissociated partner's liability to other persons. (1) 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 provided in subsection (2).
(2) A partner who dissociates without resulting in a dissolution and winding up of the partnership business is personally liable as a partner to the other party as the result of a partnership obligation incurred in connection with a transaction entered into by the partnership or a surviving partnership under 35-10-635 through 35-10-637 and 35-10-641 through 35-10-644 within 2 years after the partner's dissociation only if the other party to the transaction:
(a) reasonably believed when entering the transaction that the dissociated partner was a partner at that time;
(b) did not have notice of the partner's dissociation;
(c) is not considered to have had knowledge under 35-10-310 (5) or notice under 35-10-622 ; and
(d) the obligation is one for which the partner would be personally liable under 35-10-307 or 35-10-629 if the partner had not dissociated.
(3) By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation.
(4) 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.