{"data":{"id":"us-ar/ark.-code-ann.-4-46-703","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-46-703","heading":"Dissociated partner's liability to other persons","body":"(a) 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) of this section. (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 converted or surviving organization under § 4-46-901 et seq., within two years after the partner's dissociation, only if the partner is liable for the obligation under § 4-46-306 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 § 4-46-303(e) or notice under § 4-46-704(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 obligation. (d) 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 1999, No. 1518, § 703; 2009, No. 408, § 11.\n\n(a) 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) of this section.\n\n(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 converted or surviving organization under § 4-46-901 et seq., within two years after the partner's dissociation, only if the partner is liable for the obligation under § 4-46-306 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 § 4-46-303(e) or notice under § 4-46-704(c) .\n\n(1) reasonably believed that the dissociated partner was then a partner;\n\n(2) did not have notice of the partner's dissociation; and\n\n(3) is not deemed to have had knowledge under § 4-46-303(e) or notice under § 4-46-704(c) .\n\n(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.\n\n(d) 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.","path":["AR Code","Title 4","Chapter 46","Subchapter 7"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_ar_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:41Z","sha256":"a25998643e5e66fe0433b0b796f8a6194e948bc7b9c5ac5de71481575e53c047","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-46-702","next":"us-ar/ark.-code-ann.-4-46-704"},"notice":"GroundRules: Original legal text. Not legal advice."}