CA Corp Code Section 16702


(a)

For two years after a partner dissociates, the partnership, including a surviving partnership under Article 9 (commencing with Section 16901), is bound by an act of the dissociated partner that would have bound the partnership under Section 16301 before 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.

(3)

The other party is not deemed to have had knowledge under subdivision (e) of Section 16303 or notice under subdivision (c) of Section 16704.

(b)

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 subdivision (a).
Last Updated

Aug. 19, 2023

§ 16702’s source at ca​.gov