(1) A partnership is liable for loss or injury caused to a person, or for a penalty incurred, as a result of a wrongful act or omission, or other actionable conduct, of a partner acting in the ordinary course of business of the partnership or with authority of the partnership.
(2) If, in the course of the partnership’s business or while acting with authority of the partnership, a partner receives or causes the partnership to receive money or property of a person not a partner, and the money or property is misapplied by a partner, then the partnership is liable for the loss.

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Terms Used In Kentucky Statutes 362.1-305

  • Business: includes every trade, occupation, and profession. See Kentucky Statutes 362.1-101
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Partnership: means an association of two (2) or more persons to carry on as co- owners a business for profit formed under KRS §. See Kentucky Statutes 362.1-101
  • Person: means an individual, an entity, or any other legal or commercial entity. See Kentucky Statutes 362.1-101
  • Property: means all property, real, personal, or mixed, tangible or intangible, or any interest therein. See Kentucky Statutes 362.1-101

Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 32, effective July 12, 2006.