Texas § 152.504 WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP.

Texas Statutes

§ 152.504 — WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP.

Texas § 152.504

Code BOBusiness Organizations Code

This text of Texas § 152.504 (WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 152.504 (2026).

Text

Sec. 152.504. WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP.

(a)The action of a withdrawn partner occurring not later than the first anniversary of the date of the person's withdrawal binds the partnership if the transaction would bind the partnership before the person's withdrawal and the other party to the transaction:

(1)does not have notice of the person's withdrawal as a partner;

(2)had done business with the partnership within one year preceding the date of withdrawal; and

(3)reasonably believed that the withdrawn partner was a partner at the time of the transaction.

(b)A withdrawn partner is liable to the partnership for loss caused to the partnership arising from an obligation incurred by the withdrawn partner after the withdrawal date and for which the partnership is liable u

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

Sec. 152.504. WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP. (a) The action of a withdrawn partner occurring not later than the first anniversary of the date of the person's withdrawal binds the partnership if the transaction would bind the partnership before the person's withdrawal and the other party to the transaction:
(1) does not have notice of the person's withdrawal as a partner;
(2) had done business with the partnership within one year preceding the date of withdrawal; and
(3) reasonably believed that the withdrawn partner was a partner at the time of the transaction.
(b) A withdrawn partner is liable to the partnership for loss caused to the partnership arising from an obligation incurred by the withdrawn partner after the withdrawal date and for which the partnership is liable under Subsection (a).