635977-1897-Ordinances-Nos-1-2-and-3-assented-to — Page 5

THE HONGKONG GOVERNMENT GAZETTE, 22ND MAY,

1897.

371

Misapplica

13. In the following cases, namely,— (1.) Where one partner, acting within the scope of his tion of money

apparent authority, receives the money or property of a third person and misapplies it: and

or property received for or in custody

(2.) Where a firm in the course of its business receives of firm.

the money or property of a third person, and the money

or property so received is misapplied by one or more of the partners while it is in the custody of the firm,

the firm is liable to make good the loss.

14. Every partuer is liable jointly with his co-partners Liability for and also severally for everything for which the firm while wrongs joint he is a partner therein becomes liable under either of the and several. last two preceding sections.

15. If a partner, being a trustee, improperly employs proper trust-property in the business or on the account of the employment partnership, no other partner is liable for the trust-property of trust- to the persons beneficially interested therein: Provided as partnership

follows:-

(1.) This section shall not affect any liability incurred by any partner by reason of his having notice of a breach of trust; and

(2.) Nothing in this section shall prevent trust money from being followed and recovered from the firm if still in its possession or under its control.

property for

purposes.

16. (1.) Every one, who by words spoken or written Persons liable or by conduct represents himself, or who knowingly suffers by "holding himself to be represented, as a partner in a particular firm, out." is liable as a partner to any one who has, on the faith of any such representation, given eredit to the firm, whether the representation has or has not been made or communicated to the person so giving credit by or with the knowledge of the apparent partner making the representation or suffer- ing it to be made.

(2.) Provided that where after a partner's death the partnership business is continued in the old firm-name, the continued use of that name or of the deceased partner's name as part thereof shall not of itself make his executors or administrators, estate or effects, liable for any partner- ship debts contracted after his death.

17. Au admission or representation made by any partner Admissions concerning the partnership affairs, and in the ordinary course of its business, is evidence against the firm.

and represen- tations of partner.

18. Notice to any partner who habitually acts in the Notice to partnership business of any matter relating to partnership acting affairs operates as notice to the firm, except in the case of partner to be a fraud on the firm committed by or with the consent of that partner.

notice to firm,

19.-(1.) A person who is admitted as a partner into Liabilities of an existing firm does not thereby become liable to the incoming creditors of the firm for anything done before he became and outgoing a partner.

partners,

(2.) A partner who retires from a firm does not thereby ccuse to be liable for partnership debts or obligations in- curred before his retirement.

(8.) A retiring partner may be discharged from any existing liabilities by an agreement to that effect between himself and the members of the firm as newly constituted and the creditors, and this agreement may be either express or inferred as a fact from the course of dealing between the creditors and the firm as newly constituted.

20. A continuing guarantee given either to a firm or to Revocation of a third person in respect of the transactions of a firm is, in continuing the absence of agreement to the contrary, revoked as to guarantee by future transactions by any change in the constitution of change in the firm to which, or of the firm in respect of the transac- tions of which, the guarantee was given.

Relations of Partners to one another,

tinn.

21. The muinal rights and duties of partners, whether Variation by ascertained by agreement or defined by this Ordinance, consent of may be varied by the consent of all the partners, and such terms of consent may be either express or inferred from a course of partnership, dealing.

22.-(1.) All property and rights and interests in Partnership property originally brought into the partnership stock or property. acquired, whether by purchase or otherwise, on account of the firm, or for the purposes and in the course of the