KANSAS STATUTES AND CODES

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

56a-703

Chapter 56a.--KANSAS UNIFORM PARTNERSHIP ACT Article 7.--PARTNER'S DISSOCIATION WHEN BUSINESS NOT WOUND UP

56a-703. Dissociated partner's liability to otherpersons.(a) A partner's dissociation does not of itselfdischarge the partner's liability for a partnership obligationincurred before dissociation. A dissociatedpartner is not liablefor a partnership obligation incurred after dissociation, except asotherwise provided in subsection (b).

(b) A partner who dissociates without resulting in adissolution and winding up of the partnership business is liable asa partner to the other party in a transaction entered into by thepartnership, or a surviving partnership under article 9, withintwo years after the partner's dissociation, only if the partner is liable forthe obligation under K.S.A. 56a-306 and amendments thereto and atthe time ofentering into the transaction the other party:

(1) Reasonably believed that the dissociated partnerwas then a partner;

(2) did not have notice of the partner'sdissociation; and

(3) is not deemed to have had knowledge undersubsection (e) of K.S.A. 56a-303 or notice under subsection (c) ofK.S.A. 56a-704.

(c) By agreement with the partnership creditor and thepartners continuing the business, a dissociated partner may bereleased from liability for a partnership obligation.

(d) A dissociated partner is released from liability fora partnership obligation if a partnership creditor, with notice ofthe partner's dissociation but without the partner's consent,agrees to a material alteration in the nature or time of payment ofa partnership obligation.

History: L. 1998, ch. 93, § 35; Jan. 1, 1999.