South Dakota § 48-7A-703 Dissociated partner's liability to other persons.

South Dakota Statutes

§ 48-7A-703 — Dissociated partner's liability to other persons.

South Dakota·Title 48 PARTNERSHIPS·Ch. 48-7 UNIFORM PARTNERSHIP ACT

(a)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 otherwise provided in subsection (b).

(b)A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under Article 9, within two years after the partner's dissociation, only if the partner is liable for the obligation under § 48 - 7A - 306 and at the time of entering into the transaction the other party:

(1)Reasonably believed that the dissociated partner was then a partner;

(2)Di

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(a) 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 otherwise provided in subsection (b). (b) A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under Article 9, within two years after the partner's dissociation, only if the partner is liable for the obligation under § 48 - 7A - 306 and 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 partners dissociation; and (3) Is not deemed to have had knowledge under subsection 48 - 7A - 303(e) or notice under subsection 48 - 7A - 704(c). (c) By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation. (d) 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.

South Dakota § 48-7A-703 (Dissociated partner's liability to other persons.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.