Tennessee § 61-1-703 - Dissociated partner's liability to other persons.

§ 61-1-703. Dissociated partner's liability to other persons.

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 subsection (b). A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under part 9 of this chapter, within one year after the partner's dissociation, only if the obligation is one for which such dissociated partner would be liable under § 61-1-306 if such dissociated partner had not dissociated and at the time of entering into the transaction the other party: Reasonably believed that the dissociated partner was then a partner; Did not have notice of the partner's dissociation; and Is not deemed to have had knowledge under § 61-1-303(d) or notice under § 61-1-704(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. 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. Acts 2001, ch. 353.