Victorian Consolidated Legislation

Partnership Act 1958 - SECT 21

Liabilities of incoming and outgoing partners

21. Liabilities of incoming and outgoing partners



(1) A person who is admitted as a partner into an existing firm does not
thereby become liable to the creditors of the firm for anything done before he
became a partner.

(2) A partner who retires from a firm does not thereby cease to be liable for
partnership debts or obligations incurred before his retirement.

(3) A retiring partner may be discharged from any existing liabilities by an
agreement to that effect between himself and the members of the firm as newly
constituted and the creditors and this agreement may be either express or
inferred as a fact from the course of dealing between the creditors and the
firm as newly constituted.