New Mexico § 54-1A-702 Dissociated partner's power to bind and liability to

New Mexico Statutes

§ 54-1A-702 — Dissociated partner's power to bind and liability to

New Mexico § 54-1A-702

Ch. 54Partnerships

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

This text of New Mexico § 54-1A-702 (Dissociated partner's power to bind and liability to) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 54-1A-702 (2026).

Text

partnership.

(a)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 301 [54-1A-301 NMSA 1978] 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) [54-1A-303(e) NMSA 1978] or notice under Section 704(c) [54-1A-704(c) NMSA 1978].

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

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

partnership. (a) 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 301 [54-1A-301 NMSA 1978] 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) [54-1A-303(e) NMSA 1978] or notice under Section 704(c) [54-1A-704(c) NMSA 1978]. (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).