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(a)?A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation incurred before dissociation. ?A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provided in subdivision (b).
(b)?Except for registered limited liability partnerships and foreign limited liability partnerships, a partner who dissociates is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under Article 9 (commencing with Section 16901), within two years after the partner's dissociation, only if at the time of entering into the transaction all of the following apply to the other party:
(1)?The other party reasonably believed that the dissociated partner was then a partner.
(2)?The other party did not have notice of the partner's dissociation.
(c)?By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation.
(d)?A dissociated partner is released from liability for a partnership obligation if a partnership creditor, with notice of the partner's dissociation but without the partner's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation.
Cite this article: FindLaw.com - California Code, Corporations Code - CORP § 16703 - last updated January 01, 2019 | https://codes.findlaw.com/ca/corporations-code/corp-sect-16703.html
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