{"data":{"id":"us-ky/krs-362.320","jurisdiction":"us-ky","citation":"KRS 362.320","heading":"Power of partner to bind partnership to third persons after dissolution.","body":"(1) After dissolution a partner can bind the partnership except as provided in subsection\n(3):\n(a) By any act appropriate for winding up partnership affairs or completing\ntransactions unfinished at dissolution;\n(b) By any transaction which would bind the  partnership if dissolution had not\ntaken place, provided the other party to the transaction:\n(I) Had extended credit to the partnership prior to dissolution and had no\nknowledge or notice of the dissolution; or\n(II) Though he had not so extended credit,  had nevertheless known of the\npartnership prior to dissolution, and, having no knowledge or notice of\ndissolution, the fact of dissolution had not been advertised in a\nnewspaper of general circulation in the place (or in each place if more\nthan one) at which the partnership business was regularly carried on.\n(2) The liability of a partner under paragraph (b) of subsection (1) shall be satisfied out\nof partnership assets alone when such partner had been prior to dissolution:\n(a) Unknown as a partner to the person with whom the contract is made; and\n(b) So far unknown and inactive in partnership affairs that the business reputation\nof the partnership could not be said to have been in any degree due to his\nconnection with it.\n(3) The partnership is in no case bound by any act of a partner after dissolution:\n(a) Where the partnership is dissolved because it is unlawful to carry on the\nbusiness, unless the act is appropriate for winding up partnership affairs; or\n(b) Where the partner has become bankrupt; or\n(c) Where the partner has no authority to wind up partnership affairs; except by a\ntransaction with one who:\n(I) Had extended credit to the partnership prior to dissolution and had no\nknowledge or notice of his want of authority; or\n(II) Had not extended credit to the partnership prior to dissolution, and,\nhaving no knowledge or notice of his want of authority, the fact of his\nwant of authority has not been advertised in the manner provided for\nadvertising the fact of dissolution in subdiv ision (II) of paragraph (b) of\nsubsection (1) of this section.\n(4) Nothing in this section shall affect the liability under KRS 362.225 of any person\nwho after dissolution represents himself or consents to another representing him as\na partner in a partnership engaged in carrying on business.","path":["KRS Chapter 362"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34323","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:55Z","sha256":"1422f3f4d876ec83b19042899d08a93699a5f5bb28f06962393f5d6d7d94fa21","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.315","next":"us-ky/krs-362.325"},"notice":"GroundRules: Original legal text. Not legal advice."}