358.140. Partnership bound by partner's breach of trust.
Partnership bound by partner's breach of trust.
358.140. The partnership is bound to make good the loss
(1) Where one partner acting within the scope of hisapparent authority receives money or property of a third personand misapplies it; and
(2) Where the partnership in the course of its businessreceives money or property of a third person and the money orproperty so received is misapplied by any partner while it is inthe custody of the partnership.
(L. 1949 p. 506 § 14)