 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
BUSINESS ORGANIZATIONS CODE |
|
Title 4. PARTNERSHIPS |
|
Chapter 152. GENERAL PARTNERSHIPS |
|
Subchapter G. WITHDRAWAL OF PARTNER |
Sec. 152.504. WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP
-
(a) The action of a withdrawn partner occurring not later than the first anniversary of the date of the person's withdrawal binds the partnership if the transaction would bind the partnership before the person's withdrawal and the other party to the transaction:
(1) does not have notice of the person's withdrawal as a partner;
(2) had done business with the partnership within one year preceding the date of withdrawal; and
(3) reasonably believed that the withdrawn partner was a partner at the time of the transaction.
(b) A withdrawn partner is liable to the partnership for loss caused to the partnership arising from an obligation incurred by the withdrawn partner after the withdrawal date and for which the partnership is liable under Subsection (a).