{"data":{"id":"us-sd/sdcl-48-7a-703","jurisdiction":"us-sd","citation":"SDCL § 48-7A-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).\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 surviving partnership under Article 9, within two years after the partner's dissociation, only if the partner is liable for the obligation under § 48-7A-306 and at the time of entering into the transaction the other party:\n(1) Reasonably believed that the dissociated partner was then a partner;\n(2) Did not have notice of the partners dissociation; and\n(3) Is not deemed to have had knowledge under subsection 48-7A-303(e) or notice under subsection 48-7A-704(c).\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(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":["TITLE 48. PARTNERSHIPS","CHAPTER 48-7A. UNIFORM PARTNERSHIP ACT"],"source_url":"https://sdlegislature.gov/Statutes/48-7A-703","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"9724658bb123f2d815885a40e44649c493c53c23072bcc174bff694ca29eef3f","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-48-7a-702","next":"us-sd/sdcl-48-7a-704"},"notice":"GroundRules: Original legal text. Not legal advice."}