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District of Columbia · Through 2026-08-20 (D.C. Law 26-175)

D.C. Code § 29-607.03: Dissociated partner’s liability to other persons.

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Where this section sits in the code
  1. Title 29. Business Organizations. [Enacted title]
  2. Chapter 6. General Partnerships.
  3. Subchapter VII. Partner’s Dissociation When Business Not Wound Up.

(a)

A partner’s dissociation shall not of itself discharge the partner’s liability for a partnership debt, obligation, or other liability incurred before dissociation. A dissociated partner shall not be liable for a partnership debt, obligation, or other liability incurred after dissociation, except as otherwise provided in subsection (b) of this section.

(b)

A partner that dissociates without resulting in a dissolution and winding up of the partnership business shall be liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under subchapter IX of this chapter, within 2 years after the partner’s dissociation, only if the partner is liable for the obligation under § 29-603.06 and at the time of entering into the transaction the other party:

(1)

Reasonably believed that the dissociated partner was then a partner;

(2)

Did not have notice of the partner’s dissociation; and

(3)

Is not deemed to have had knowledge under § 29-603.03(e) or notice under § 29-607.04(c).

(c)

By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership debt, obligation, or other liability.

(d)

A dissociated partner shall be released from liability for a partnership debt, obligation, or other liability 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 debt, obligation, or other liability.

Collected 2026-08-29T05:44:07Z. Source file · JSON

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