Amendment status not verified — confirm the current text below against the official source.
Liability of firm for misapplication by partners - Where - a partner acting within his apparent authority receives money or property from a third party and misapplies it or, a firm in the course of its business receives money or property from a thirty party, and the money or property is misapplied by any of the partners while it is in the custody of the firm. the firm is liable to make good the loss.