(a)  If a person‘s dissociation results in a dissolution and winding up of the partnership business, Article 8 of this chapter applies; otherwise, Article 7 of this chapter applies.

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Terms Used In Rhode Island General Laws 7-12.1-603

  • Business: includes every trade, occupation, and profession. See Rhode Island General Laws 7-12.1-102
  • 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.
  • Partner: means a person that:

    (i)  Has become a partner in a partnership under Rhode Island General Laws 7-12.1-102

  • 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: means an individual, business corporation, nonprofit corporation, partnership, limited partnership, limited liability company, general cooperative association, limited cooperative association, unincorporated nonprofit association, statutory trust, business trust, common-law business trust, estate, trust, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Rhode Island General Laws 7-12.1-102

(b)  If a person is dissociated as a partner:

(1)  The person’s right to participate in the management and conduct of the partnership’s business terminates, except as otherwise provided in § 7-12.1-802(c); and

(2)  The person’s duties and obligations under § 7-12.1-409 end with regard to matters arising and events occurring after the person’s dissociation, except to the extent the partner participates in winding up the partnership’s business pursuant to § 7-12.1-802.

(c)  A person’s dissociation does not of itself discharge the person from any debt, obligation, or other liability to the partnership or the other partners which the person incurred while a partner.

History of Section.
P.L. 2022, ch. 123, § 2, effective January 1, 2023; P.L. 2022, ch. 124, § 2, effective January 1, 2023.