56a-703. Dissociated partner's liability to other persons.

233 words·~1 min read·/ks/56a-703

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 K.S.A. 56a-306 and amendments thereto 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 partner's dissociation; and

(3)is not deemed to have had knowledge under subsection

(e)of K.S.A. 56a-303 or notice under subsection

(c)of K.S.A. 56a-704 .

(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.