(a) After dissolution, a partnership is bound by the act of a partner or by the act of a dissociated partner acting as a partner under Section 10A-8A-8.03(a) which:
(1) is appropriate for winding up the partnership's business or not for profit activity; or
(2) would have bound the partnership under Section 10A-8A-3.01 before dissolution, if, at the time the other party enters into the transaction, the other party does not have notice of the dissolution.
(b) Subject to subsection (a), a person dissociated as a partner binds a partnership through an act occurring after dissolution only if:
(1) at the time the other party enters into the transaction the other party does not 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 not for profit activity; or
(B) would have bound the partnership under Section 10A-8A-3.01 before dissolution and at the time the other party enters into the transaction the other party does not have notice of the dissolution.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 8A - Alabama Partnership Law
Article 8 - Dissolution and Winding Up.
Section 10A-8A-8.01 - Events of Dissolution.
Section 10A-8A-8.02 - Effect of Dissolution.
Section 10A-8A-8.03 - Right to Wind Up Business or Not for Profit Activity.
Section 10A-8A-8.04 - Power to Bind Partnership After Dissolution.
Section 10A-8A-8.06 - Known Claims Against Dissolved Partnership.
Section 10A-8A-8.07 - Other Claims Against Dissolved Partnership.
Section 10A-8A-8.09 - Disposition of Assets, When Contributions Required.
Section 10A-8A-8.10 - Reinstatement After Dissolution.
Section 10A-8A-8.11 - Certificate of Reinstatement.