EMERSON C. HARRINGTON, GOVERNOR. 321

(b) So far unknown and inactive in partnership affairs
that the business reputation of the partnership could not be
said to have been in any degree due to his connection with it.

(3) The partnership is in no case bound by any act of a
partner after dissolution

(a) Where the partnership is dissolved because it is un-
lawful to carry on the business, unless the act is appropriate
for winding up partnership affairs; or

(b) Where the partner has become bankrupt; or
(c) Where the partner has no authority to wind up part-
nership affairs, except by a transaction with one who

I. Had extended credit to the partnership prior to dissolu-
tion and had no knowledge or notice of his want of authority;
or

II, Had not extended credit to the partnership prior. to
dissolution, and, having no knowledge or notice of his want of
authority, the fact of his want of authority has not been adver-
tised in the manner provided for advertising the fact of disso-
lution in paragraph (IbII).

(4) Nothing in this section shall affect the liability under
section 16 of any person who after dissolution represents him-
self or consents to another representing him as a partner in a
partnership engaged in carrying on business.

SEC. 36. (Effect of Dissolution on Partner's Existing Lia-
bility. ) (1) The dissolution of the partnership does not of
itself discharge the existing liability of any partner.

(2) A partner is discharged from any existing liability
upon dissolution of the partnership by an agreement to that
effect between himself, the partnership creditor and the person
or partnership continuing the business; and such agreement
may" be inferred from the course of dealing between the cred-
itor having knowledge of the dissolution and the person or
partnership continuing the business.

(3) Where a person agrees to assume the existing obliga-
tions of a dissolved partnership, the partners whose obligations
have been assumed shall be discharged from any liability to
any creditor of the partnership who, knowing of the agree-
ment, consents to a material alteration in the nature or time of
payment of such obligations.

(4) The individual property of a deceased partner shall be
liable for all obligations of the partnership incurred while he
was a partner but subject to the prior payment of his separate
debts.

11