358.140 Partnership bound by partner's breach of trust.

358.140. 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. (L. 1949 p. 506 § 14)