Dissociated partner’s power to bind and liability to partnership

Dissociated partner’s power to bind and liability to partnership. — (1) For 1 year after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under ss. 620.8911 - 620.8923 , is bound by an act of the dissociated partner which would have bound the partnership under s. 620.8301 before dissociation only if, at the time of entering into the transaction, the other party: (a) Reasonably believed that the dissociated partner was then a partner; (b) Did not have notice of the partner’s dissociation; and (c) Is not deemed to have had knowledge under s. 620.8303 (4) or notice under s. 620.8704 (4). (2) 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 (1).