21Liabilities of incoming and outgoing partners

21 Liabilities of incoming and outgoing partners (1) An entity does not, only because of the entity's admission as a partner in a firm other than an incorporated limited partnership, become liable for a liability incurred by the firm before the admission. (2) An entity does not, only because of the entity's retirement as a partner in the firm, cease to be liable for a liability incurred by the firm before the retirement. (3) An entity does not, only because of the entity's admission as a general partner in an incorporated limited partnership, become liable for a liability incurred by the partnership before the admission. (4) An entity does not, only because of the entity's retirement as a general partner in the partnership, cease to be liable for a liability incurred by the partnership before the retirement. (5) A retiring partner in a firm may be discharged from any existing liabilities of the firm by an agreement between: (a) the partner; and (b) the firm's creditors; and (c) if the firm is not an incorporated limited partnership – the partners in the firm as newly constituted; and (d) if the firm is an incorporated limited partnership – the partnership. (6) The agreement may be expressed or inferred from the conduct of anyone referred to in subsection (5).