Victorian Consolidated Legislation

Partnership Act 1958 - SECT 15

Misapplication of money or property

15. Misapplication of money or property

In the following cases, namely-

   (a)  where one partner acting within the scope of his apparent authority
        receives the money or property of a third person and misapplies it;
        and

   (b)  where a firm in the course of its business receives money or property
        of a third person and the money or property so received is misapplied
        by one or more of the partners while it is in the custody of the firm-

the firm is liable to make good the loss.