Section 1776.55 | Dissociated partner's power to bind and liability to partnership.
(A) For two years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under section 1776.68 of the Revised Code, is bound by any act of the dissociated partner that would have bound the partnership under section 1776.31 of the Revised Code before dissociation only if, at the time of entering into the transaction all of the following were true:
(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.
(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 division (A) of this section.
Available Versions of this Section
- August 6, 2008 – House Bill 332, 127th General Assembly [ View August 6, 2008 Version ]