§ 7-12-25 - Partnership bound by partner's breach of trust.
SECTION 7-12-25
§ 7-12-25 Partnership bound by partner'sbreach of trust. – The partnership is bound to make good the loss:
(1) Where one partner acting within the scope of his or herapparent authority receives money or property of a third person and misappliesit; and
(2) Where the partnership in the course of its businessreceives money or property of a third person and the money or property soreceived is misapplied by any partner while it is in the custody of thepartnership.