ยง 25. 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.
Structure New York Laws
Article 3 - Relations of Partners to Persons Dealing With the Partnership.
20 - Partner Agent of Partnership as to Partnership Business.
21 - Conveyance of Real Property of the Partnership.
22 - Partnership Bound by Admission of Partner.
23 - Partnership Charged With Knowledge of or Notice to Partner.
24 - Partnership Bound by Partner's Wrongful Act.
25 - Partnership Bound by Partner's Breach of Trust.