Code of Alabama |
Match Context and Document information |
URL: | http://alisondb.legislature.state.al.us/alison/CodeOfAlabama /1975/10A-8A-7.03.htm |
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Depth: | 0 singles |
Size: | 2,132 bytes |
Modified: | 2018-11-13 09:41:16 |
Categories: | -None- |
Title: | 10A-8A-7.03 |
Description: | -None- |
Keywords: | -None- |
Meta data: | -None- |
Body: | Section 10A-8A-7.03 Liability of person dissociated as a partner to other persons. (a) A person's dissociation as a partner does not of itself discharge that person's liability for a partnership obligation incurred before dissociation. A person dissociated as a partner is not liable for a partnership obligation incurred after dissociation, except as provided in subsection (b). (b) A person that dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership or other surviving entity under Article 9 of this chapter or Article 8 of Chapter 1, within one year after the partner's dissociation, only if the partner is liable for the obligation under Section 10A-8A-3.06 and at the time of entering into the transaction the other party: (1) reasonably believed that the person dissociated as a partner was then a partner and reasonably relied on such belief in entering into the transaction; (2) did not have notice of the person's dissociation; and (3) is not deemed to have had knowledge or notice under Section 10A-8A-1.03 of the person's dissociation. (c) By agreement with the partnership creditor and the partners continuing the business or not for profit activity, a person dissociated as a partner may be released from liability for a partnership obligation. (d) A person dissociated as a partner is released from liability for a partnership obligation if a partnership creditor, with notice of the person's dissociation but without the person's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation. (Act 2018-125, ยง7.) |