Effective - 28 Aug 1949
358.140. Partnership bound by partner's breach of trust. — 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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(L. 1949 p. 506 § 14)