§ 67 — Effect of dissolution on partner's existing liability

New York § 67

• Jurisdiction: New York
• Law PTR: Partnership
• Art. 6: Dissolution and Winding Up

Text

§ 67. Effect of dissolution on partner's existing liability. 1. The\ndissolution of the partnership does not of itself discharge the existing\nliability of any partner.\n 2. A partner is discharged from any existing liability upon\ndissolution of the partnership by an agreement to that effect between\nhimself, the partnership creditor and the person or partnership\ncontinuing the business; and such agreement may be inferred from the\ncourse of dealing between the creditor having knowledge of the\ndissolution and the person or partnership continuing the business.\n 3. Where a person agrees to assume the existing obligations of a\ndissolved partnership, the partners whose obligations have been assumed\nshall be discharged from any liability to any creditor of the\npartnership who, knowing of the agreement, consents to a material\nalteration in the nature or time of payment of such obligations.\n 4. The individual property of a deceased partner shall be liable for\nthose obligations of the partnership incurred while he was a partner and\nfor which he was liable under section twenty-six of this chapter but\nsubject to the prior payment of his separate debts.\n