48-1-33 - Effect of dissolution on partner's existing liability.
48-1-33. Effect of dissolution on partner's existing liability.
(1) The dissolution of a partnership does not of itself discharge the existing liability ofany partner.
(2) A partner is discharged for any existing liability upon dissolution of the partnership byan agreement to that effect between himself, the partnership creditor and the person or partnershipcontinuing the business; and such agreement may be inferred from the course of dealing betweenthe creditor having knowledge of the dissolution and the person or partnership continuing thebusiness.
(3) Where a person agrees to assume the existing obligations of a dissolved partnership,the partners whose obligations have been assumed shall be discharged from any liability to anycreditor of the partnership who, knowing of the agreement, consents to a material alteration in thenature or time of payment of such obligations.
(4) The individual property of a deceased partner shall be liable for those obligations ofthe partnership incurred while he was a partner and for which the partner was liable under Section48-1-12, but subject to the prior payment of his separate debts.
Amended by Chapter 61, 1994 General Session