SECTION 14. Liability of partnership for partner's misapplication of money or property  


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  • The partnership is bound to make good the loss:

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

    (b) 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.