§ 47B-7-2 — Dissociated partner's power to bind and liability to partnership

West Virginia § 47B-7-2

• Jurisdiction: West Virginia
• Ch. 47B: UNIFORM PARTNERSHIP ACT
• Art. 7: PARTNER'S DISSOCIATION WHEN BUSINESS NOT WOUND UP

Text

(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 nine of this chapter, is bound by an act of the dissociated partner which would have bound the partnership under section one, article three of this chapter 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 subsection (e), section three, article three or notice under subsection (c), section four, article seven of this chapter.

(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) of this section.

Legislative History

1995 Reg. Sess., HB2226