Wisconsin Statutes 178.0805 – Liability after dissolution of partner and person dissociated as partner
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Terms Used In Wisconsin Statutes 178.0805
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
(1) If a partner having knowledge of the dissolution causes a partnership to incur an obligation under s. 178.0804 (1) by an act that is not appropriate for winding up the partnership business, the partner is liable to all of the following:
(a) The partnership, for any damage caused to the partnership arising from the obligation.
(b) If another partner or person dissociated as a partner is liable for the obligation, that other partner or person, for any damage caused to that other partner or person arising from the liability.
(2) Except as otherwise provided in sub. (3), if a person dissociated as a partner causes a partnership to incur an obligation under s. 178.0804 (2), the person is liable to all of the following:
(a) The partnership, for any damage caused to the partnership arising from the obligation.
(b) If a partner or another person dissociated as a partner is liable for the obligation, the partner or other person, for any damage caused to the partner or other person arising from the liability.
(3) A person dissociated as a partner is not liable under sub. (2) if all of the following apply:
(a) Section 178.0802 (3) permits the person to participate in winding up.
(b) The act that causes the partnership to be bound under s. 178.0804 (2) is appropriate for winding up the partnership’s business.