21—Substitution of section 17
Section 17—delete the section and substitute:
17—Liabilities of incoming and outgoing partners
(1) A person who is
admitted as a partner into an existing firm other than a limited partnership
or incorporated limited partnership does not by that admission alone become
liable for anything done before the person became a partner.
(2) A person who is
admitted as a general partner into an existing limited partnership or
incorporated limited partnership does not by that admission alone become
liable for anything done before the person became a general partner.
(3) A partner who
retires from a firm other than a limited partnership or incorporated
limited partnership does not by that retirement alone cease to be liable for
partnership debts and obligations incurred before the partner's retirement.
(4) A partner who
retires from a limited partnership or incorporated limited partnership does
not by that retirement alone cease to be liable for liabilities of the firm
incurred before the partner's retirement for which the partner was liable.
Note—
"Liability" is defined in section 1B.
(5) A retiring partner
in a firm other than a limited partnership or incorporated limited partnership
may be discharged from any existing liabilities by an agreement to that effect
between the partner and the members of the firm as newly constituted and the
creditors, and this agreement may be either expressed or inferred as a fact
from the course of dealing between the creditors and the firm as newly
constituted.
(6) A retiring partner
in a limited partnership or incorporated limited partnership may be discharged
from any existing liabilities by an agreement to that effect between the
partner and the firm and the creditors, and this agreement may be either
expressed or inferred as a fact from the course of dealing between the
creditors and the firm.