LegalFix
Sign In

Section 54-1A-702 - Dissociated partner's power to bind and liability to partnership.

NM Stat § 54-1A-702 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

(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 9, is bound by an act of the dissociated partner which would have bound the partnership under Section 301 [54-1A-301 NMSA 1978] 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 Section 303(e) [54-1A-303(e) NMSA 1978] or notice under Section 704(c) [54-1A-704(c) NMSA 1978].

(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).

History: Laws 1996, ch. 53, § 702.

Previous Section
Section 54-1A-701 - Purchase of dissociated partner's interest.
Next Section
Section 54-1A-703 - Dissociated partner's liability to other persons.