Idaho Code 30-23-804 – Power to Bind Partnership After Dissolution
Current as of: 2023 | Check for updates
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(a) A partnership is bound by a partner’s act after dissolution which:
(1) Is appropriate for winding up the partnership business; or
(2) Would have bound the partnership under section 30-23-301, Idaho Code, before dissolution, if, at the time the other party enters into the transaction, the other party does not know or have notice of the dissolution.
(b) A person dissociated as a general partner binds a partnership through an act occurring after dissolution if:
(1) At the time the other party enters into the transaction:
(A) Less than two (2) years has passed since the dissociation; and
(B) The other party does not know or have notice of the dissociation and reasonably believes that the person is a partner; and
(2) The act:
(A) Is appropriate for winding up the partnership’s business; or
(B) Would have bound the partnership under section 30-23-301, Idaho Code, before dissolution and at the time the other party enters into the transaction the other party does not know or have notice of the dissolution.
Terms Used In Idaho Code 30-23-804
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: includes a corporation as well as a natural person;
Idaho Code 73-114