1. (a) When partnership bound.— After a person is dissociated as a partner without the dissociation resulting in a dissolution and winding up of the partnership business and before the partnership is merged or divided out of existence, converted or domesticated under Chapter 3 (relating to entity transactions), or dissolved, the partnership is bound by an act of the person only if:

   1. (1) the act would have bound the partnership under section 8431 (relating to partner agent of partnership) before dissociation; and

   2. (2) at the time the other party enters into the transaction:

      1. (i) less than two years have passed since the dissociation; and
      2. (ii) the other party does not know or have notice of the dissociation and reasonably believes that the person is a partner.

2. (b) Liability of person dissociated as partner.— If a partnership is bound under subsection (a), the person dissociated as a partner which caused the partnership to be bound is liable:

   1. (1) to the partnership for any damage caused to the partnership arising from the obligation incurred under subsection (a); and
   2. (2) if a partner or another person dissociated as a partner is liable for the obligation, to the partner or other person for any damage caused to the partner or other person arising from the liability.

Cross References. Section 8472 is referred to in section 8471 of this title.