After a partnership is dissolved, can actions of a partner still bind the partnership?

When a partnership is dissolved, the actions of a partner can still bind the partnership for previous transactions, due to the principle of apparent authority. This means that if a partner is acting within the scope of their authority and the transaction is related to the partnership's business, those transactions may still hold weight even after dissolution.

In a partnership dissolution scenario, it is important to differentiate between winding up the partnership affairs and the existence of previous binding agreements. If a third party enters into a transaction with a partner under the belief that the partnership still operates as usual, the partnership could still be held liable for those actions, particularly if the transaction pertains to the business conducted while the partnership was active.

This principle is significant because it protects third parties who may have entered contracts or made commitments based on their interactions with the partners. However, the authority to bind the partnership typically ends with the dissolution for new transactions unless prior agreements provide otherwise. Thus, while the partnership as an entity may no longer be functional after dissolution, the authority related to pre-dissolution affairs may still be enforceable.