{"data":{"id":"us-al/ala.-code-10a-8a-7.03","jurisdiction":"us-al","citation":"Ala. Code § 10A-8A-7.03","heading":"Liability of Person Dissociated as a Partner to Other Persons.","body":"(a) A person’s dissociation as a partner does not of itself discharge that person’s liability for a partnership obligation incurred before dissociation. A person dissociated as a partner is not liable for a partnership obligation incurred after dissociation, except as provided in subsection (b).\n(b) A person that dissociates as a partner without resulting in a dissolution and winding up of the partnership business or not for profit activity is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership or other surviving entity under Article 9 of this chapter or Article 8 of Chapter 1, within one year after the partner’s dissociation, only if the partner is liable for the obligation under Section 10A-8A-3.06 and at the time of entering into the transaction the other party:\n(1) reasonably believed that the person dissociated as a partner was then a partner and reasonably relied on such belief in entering into the transaction;\n(2) did not have notice of the person’s dissociation; and\n(3) is not deemed to have had knowledge or notice under Section 10A-8A-1.03 of the person’s dissociation.\n(c) By agreement with the partnership creditor and the partners continuing the business or not for profit activity, a person dissociated as a partner may be released from liability for a partnership obligation.\n(d) A person dissociated as a partner is released from liability for a partnership obligation if a partnership creditor, with 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 a partnership obligation.","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 8A Alabama Partnership Law","Article 7 Person’s Dissociation as a Partner When Business or Not for Profit Activity Not Wound Up."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-8A-7.03","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:53Z","sha256":"a03bf779301e099b0f7f21a5caaff46bdca2411b42b74fd11c36d3216588a6d6","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-8a-7.02","next":"us-al/ala.-code-10a-8a-7.04"},"notice":"GroundRules: Original legal text. Not legal advice."}