178.11

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178.11 Partnership liable on partner’s breach of trust. The partnership is bound to make good the loss if any of the following occurs:

178.11(1)

(1) One partner acting within the scope of his or her apparent authority receives money or property of a 3rd person and misapplies it.

178.11(2)

(2) The partnership in the course of its business receives money or property of a 3rd person and the money or property so received is misapplied by any partner while it is in the custody of the partnership.