PARTNERSHIP.
No. 1 of 1897.
833
8. If it has been agreed between the partners that any restriction shall be placed on the power of any one or more of them to bind the firm, no act done in contravention of the agreement is binding on the firm with respect to persons having notice of the agreement.
9. Every partner in a firm is liable jointly with the other partners for all debts and obligations of the firm incurred while he is a partner; and after his death his estate is also severally liable in a due course of administration for such debts and obligations, so far as they remain unsatisfied but subject to the prior payment of his separate debts.
10. Where, by any wrongful act or omission of any partner acting in the ordinary course of the business of the firm or with the authority of his co-partners, loss or injury is caused to any person not being a partner in the firm, or any penalty is incurred, the firm is liable therefor to the same extent as the partner so acting or omitting to act.
11. In the following cases, namely,--
(1) where one partner, acting within the scope of his apparent authority, receives the money or property of a third person and misapplies it; and
(2) where a firm in the course of its business receives 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.
12. Every partner is liable jointly with his co-partners and also severally for everything for which the firm while he is a partner therein becomes liable under either of the last two sections.
13. If a partner, being a trustee, improperly employs trust-property in the business or on the account of the partnership, no other partner is liable for the trust-property to the persons beneficially interested therein: Provided as 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
* As amended by No. 8 of 1912.
* As amended by No. 50 of 1911 and No. 8 of 1912.
PARTNERSHIP.
No. 1 of 1897.
833
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8. If it has been agreed between the partners that any restriction Effect of shall be placed on the power of any one or more of them to bind the firm will not firm, no act done in contravention of the agreement is binding on be bound by the firm with respect to persons having notice of the agreement.
acts of
partner.
*
*
9. Every partner in a firm is liable jointly with the other partners Liability of for all debts and obligations of the firm incurred while he is partners. a partner; and after his death his estate is also severally liable in a due course of administration for such debts and obligations, so far as they remain unsatisfied but subject to the prior payment of his separate debts.
firm for
wrongs.
*
10. Where, by any wrongful act or omission of any partner Liability of acting in the ordinary course of the business of the firm or with the authority of his co-partners, loss or injury is caused to any person not being a partner in the firm, or any penalty is incurred, the firm is liable therefor to the same extent as the partner so acting or omitting to act.
11. In the following cases, namely,--
(1) where one partner, acting within the scope of his apparent Misapplica- authority, receives the money or property of a third person and misapplies it; and
(2) where a firm in the course of its business receives 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.
tion of money or property received for or in custody of firm.
*
12. Every partner is liable jointly with his co-partners and also Liability for severally for everything for which the firm while he is a partner wrongs joint therein becomes liable under either of the last two sections.
and several.
+
of trust-
13. If a partner, being a trustee, improperly employs trust-pro- Improper perty in the business or on the account of the partnership, no other employment partner is liable for the trust-property to the persons beneficially property for interested therein: Provided as 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
* As amended by No. 8 of 1912.
As amended by No. 50 of 1911 and No. 8 of 1912.
partnership purposes.
*
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