Tex. Bus. Orgs. Code § 152.504 · Subchapter G. WITHDRAWAL OF PARTNER
WITHDRAWN PARTNER'S POWER TO BIND PARTNERSHIP.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The action of a withdrawn partner occurring not later than the first anniversary of the date of the person's withdrawal binds the partnership if the transaction would bind the partnership before the person's withdrawal and the other party to the transaction:
(1) does not have notice of the person's withdrawal as a partner;
(2) had done business with the partnership within one year preceding the date of withdrawal; and
(3) reasonably believed that the withdrawn partner was a partner at the time of the transaction.
(b) A withdrawn partner is liable to the partnership for loss caused to the partnership arising from an obligation incurred by the withdrawn partner after the withdrawal date and for which the partnership is liable under Subsection (a).
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.152.htm
- Text hash
- sha256 557f7efddc5da9e873899b849e2663462712d9b4ca0765c599dc4c43fed2637a
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 1 provision
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 152.504. Each shows the citation as that text prints it.
Business Organizations Code
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