HRS §425-134

Dissociated partner's power to bind and liability to partnership

Read the official text at capitol.hawaii.gov ↗

This section covers what happens when a partner leaves but the business continues. For a limited time, the partnership can still be held responsible for that former partner's deals if the other side reasonably thought they were still a partner and didn't know about the departure. The former partner must pay the partnership for any harm caused by such deals.

businesses

The statute, as written — Dissociated partner's power to bind and liability to partnership

A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.

(a) For two years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership is bound by an act of the dissociated partner which would have bound the partnership under section 425-112 before dissociation only if at the time of entering into the transaction the other party: (1) Reasonably believed that the dissociated partner was then a partner; (2) Did not have notice of the partner's dissociation; and (3) Is not deemed to have had knowledge under section 425-114(b) or notice under section 425-136(c). (b) A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissociated partner after dissociation for which the partnership is liable under subsection (a).

Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§425-112 When a partner's actions can bind the partnership

§425-114 How a filed partnership registration affects partner authority

§425-136 Filing a notice that a partner has left

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.