Part 3Relationship of partners to third persons and to each other
Relationship of partners to third persons
32Liability of partner who leaves firm
A partner (A) who leaves a firm does not by leaving cease to be liable for partnership debts or obligations incurred before leaving.
A may be discharged from an existing liability by an agreement to that effect between—
- A; and
- the members of the firm as newly composed; and
- the creditor.
The agreement may—
- be an express agreement; or
- be inferred as a fact from the course of dealing between the creditor and the firm as newly composed.
Compare
- 1908 No 139 s 20(2), (3)