<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 48-7A-702 - Dissociated partner's power to bind and liability to partnership. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069840Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069840SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069840CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069840Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069840DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069840DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069840Normal-000002 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2069840Normal-000003 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069840000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069840SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069840SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069840Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=48-7A-702"><span class="s2069840SENU">48-7A-702</span></a><span xml:space="preserve" class="s2069840SENU">. </span><span class="s2069840CL">Dissociated partner's power to bind and liability to partnership.</span></p><p dir="ltr" class="s2069840Normal-000000"><span class="s2069840DefaultParagraphFont">(a) For two 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, is bound by an act of the dissociated partner which would have bound the partnership under § 48</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">7A</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">301 before dissociation only if at the time of entering into the transaction the other party:</span></p><p dir="ltr" class="s2069840Normal-000002"><span class="s2069840DefaultParagraphFont">(1)    Reasonably believed that the dissociated partner was then a partner;</span></p><p dir="ltr" class="s2069840Normal-000002"><span class="s2069840DefaultParagraphFont">(2)    Did not have notice of the partner's dissociation; and</span></p><p dir="ltr" class="s2069840Normal-000002"><span class="s2069840DefaultParagraphFont">(3)    Is not deemed to have had knowledge under subsection 48</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">7A</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">303(e) or notice under subsection 48</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">7A</span><span class="s2069840DefaultParagraphFont-000001">-</span><span class="s2069840DefaultParagraphFont">704(c).</span></p><p dir="ltr" class="s2069840Normal-000003"><span class="s2069840DefaultParagraphFont">(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).</span></p><p dir="ltr" class="s2069840Normal"><span xml:space="preserve" class="s2069840000004"> </span></p><p dir="ltr" class="s2069840Normal"><span class="s2069840SCL">Source:</span><span xml:space="preserve" class="s2069840SCL-000005"> SL 2001, ch 249, § 702.</span></p></div></body></html>