Kentucky Statutes 362.1-702 – Dissociated partner’s power to bind and liability to partnership
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(1) For two (2) years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under KRS § 362.1-901 to KRS § 362.1-908, is bound by an act of the dissociated partner which would have bound the partnership under KRS § 362.1-301 before dissociation only if at the time of entering into the transaction the other party:
(a) Reasonably believed that the dissociated partner was then a partner; (b) Did not have notice of the partner’s dissociation; and
(c) Is not deemed to have knowledge under KRS § 362.1-303(5) or notice under
KRS § 362.1-704(3).
(2) 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 (1) of this section.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 50, effective July 12, 2006.
(a) Reasonably believed that the dissociated partner was then a partner; (b) Did not have notice of the partner’s dissociation; and
Terms Used In Kentucky Statutes 362.1-702
- Business: includes every trade, occupation, and profession. See Kentucky Statutes 362.1-101
- 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.
- Partnership: means an association of two (2) or more persons to carry on as co- owners a business for profit formed under KRS §. See Kentucky Statutes 362.1-101
(c) Is not deemed to have knowledge under KRS § 362.1-303(5) or notice under
KRS § 362.1-704(3).
(2) 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 (1) of this section.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 50, effective July 12, 2006.