PARTNERSHIP ACT 1895 - SECT 18
PARTNERSHIP ACT 1895 - SECT 18
18 . Misapplication of money or property
(1) Where any money or
property of a third person is received by one partner, acting within the scope
of his real or apparent authority in the partnership affairs, and is
misapplied by that partner, and where any money or property of a third person,
being as such in the custody of the firm, is misapplied by any partner, the
firm shall be liable to make good the loss.
(2) For the purposes
of this section, money shall be deemed to be in the custody of the firm when
it has been paid to any agent of the firm, or paid or credited to the account
of the firm with any person in the ordinary course of business.