North Dakota § 45-19-02 (702) Dissociated partner's power to bind and liability to partnership

North Dakota Statutes

§ 45-19-02 — (702) Dissociated partner's power to bind and liability to partnership

North Dakota·Title 45 Partnerships·Ch. 45-19 Partner's Dissociation When Business Not Wound Up

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 chapter 45-21, is bound by an act of the dissociated partner which would have bound the partnership under section 45-15-01 before dissociation only if at the time of entering into the transaction the other party:

a.Reasonably believed that the dissociated partner was then a partner;

b.Did not have notice of the partner's dissociation; and

c.Is not deemed to have had knowledge under subsection 4 of section 45-15-03 or notice under subsection 3 of section 45-19-04.

2.A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissociate

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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
chapter 45-21, is bound by an act of the dissociated partner which would have bound
the partnership under section 45-15-01 before dissociation only if at the time of
entering into the transaction the other party:
a. Reasonably believed that the dissociated partner was then a partner;
b. Did not have notice of the partner's dissociation; and
c. Is not deemed to have had knowledge under subsection 4 of section 45-15-03 or
notice under subsection 3 of section 45-19-04.
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.

North Dakota § 45-19-02 ((702) Dissociated partner's power to bind and liability to partnership) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.