Dissociation

Question 1

Dissociation

Answer 1

A change in legal relationship

Question 2

Events Triggering Dissociation

Answer 2

Exit of a partner, death, bankruptcy, expulsion by judicial decree

Question 3

Unlawful Dissociation

Answer 3

Exiting before completion of the time or undertaking, may be a bsis for damages to partners.

Partners can withhold check until regular payout.

Question 4

Consequences of Dissociation

Answer 4

Dissociated partner no longer able to participate in management. Dissociated Partner entitled to payment of the value of his partnership interest and to indeminification (from existing and future liabilities.

Question 5

Liabilities from Dissociated Partners

Answer 5

Remain liable for pre-dossication obligations of partnership unless they were altered when creditor knew of dissociation had occured and post-dissociation obligations for TWO YEARS if 3rd party reasonable believed he or she still a partner.

Partner needs to put 3rd parties on notice by filing with state. still liable for 90 days.