(805 ILCS 206/702)
Sec. 702.
Dissociated partner's power
to bind and liability to partnership.
(a) For 2 years after a partner dissociates without resulting in a
dissolution and winding up
of the partnership business, the partnership, including a surviving partnership
under Article 9 of
this Act, is bound by an act of the dissociated partner which would have bound
the partnership
under Section 301 before dissociation only if at the time of entering into the
transaction the other
party:
(1) reasonably believed that the dissociated partner |
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(2) did not have notice of the partner's
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(3) is not deemed to have had knowledge under Section
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(b) A dissociated partner is liable to the partnership for any damage caused
to the partnership
arising from an obligation incurred by the dissociated partner after
dissociation for which the
partnership is liable under subsection (a) of this Section.
(Source: P.A. 92-740, eff. 1-1-03.)
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