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Rhode Island · Through site files published 2025-08-13 · Newer source version available

R.I. Gen. Laws § 7-12.1-703: Liability of person dissociated as partner to other persons.

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Where this section sits in the code
  1. Title 7 Corporations, Associations, and Partnerships
  2. Chapter 12.1 Uniform Partnership Act
  3. Article 7 Person’s Dissociation As a Partner When Business Not Wound Up

(a) Except as otherwise provided in subsection (b) of this section, a person dissociated as a partner is not liable for a partnership obligation incurred after dissociation.

(b) A person that is dissociated as a partner is liable on a transaction entered into by the partnership after the dissociation only if:

(1) A partner would be liable on the transaction; and

(2) At the time the other party enters into the transaction:

(i) Less than two (2) years has passed since the dissociation; and

(ii) The other party does not have knowledge or notice of the dissociation and reasonably believes that the person is a partner.

(c) By agreement with a creditor of a partnership and the partnership, a person dissociated as a partner may be released from liability for a debt, obligation, or other liability of the partnership.

(d) A person dissociated as a partner is released from liability for a debt, obligation, or other liability of the partnership if the partnership’s creditor, with knowledge or notice of the person’s dissociation but without the person’s consent, agrees to a material alteration in the nature or time of payment of the debt, obligation, or other liability.

Collected 2026-09-05T19:35:09Z. Source file · JSON

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