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 of
any partner.
(2) A partner is discharged for any existing liability upon dissolution of the partnership by
an agreement to that effect between himself, the partnership creditor and the person or partnership
continuing the business; and such agreement may be inferred from the course of dealing between
the creditor having knowledge of the dissolution and the person or partnership continuing the
business.
(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 any
creditor of the partnership who, knowing of the agreement, consents to a material alteration in the
nature or time of payment of such obligations.
(4) The individual property of a deceased partner shall be liable for those obligations of
the partnership incurred while he was a partner and for which the partner was liable under Section
48-1-12, but subject to the prior payment of his separate debts.
Amended by Chapter 61, 1994 General Session
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Last revised: Wednesday, July 23, 2008