50-73.113 - Dissociated partner's power to bind partnership. - Virginia Statutes

§ 50-73.113. Dissociated partner's power to bind partnership.

A. For one year after a partner dissociates without resulting in adissolution and winding up of the partnership business, the partnership,including a surviving partnership under Article 9, is bound by an act of thedissociated partner which would have bound the partnership under § 50-73.91before dissociation only if at the time of entering into the transaction theother 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 § 50-73.93 ornotice under subsection C of § 50-73.115.

B. A dissociated partner is liable to the partnership for any damage causedto the partnership arising from an obligation incurred by the dissociatedpartner after dissociation for which the partnership is liable undersubsection A.

(1996, c. 292.)