(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) the act would have bound the partnership under section 8431 (relating to partner agent of partnership) before dissociation; and (2) at the time the other party enters into the transaction: (i) less than two years have passed since the dissociation; and (ii) the other party does not know or have notice of the dissociation and reasonably believes that the person is a partner. (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) to the partnership for any damage caused to the partnership arising from the obligation incurred under subsection (a); and (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.
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