Section 25. Partnership bound by partner's breach of trust

Latest version.

The partnership
  is bound to make good the loss:
    1. Where one partner acting within the scope of his apparent authority
  receives money or property of a third person and misapplies it; and
    2.  Where the partnership in the course of its business receives money
  or property of a third person and the money or property so  received  is
  misapplied by any partner while it is in the custody of the partnership.

                    
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