802
Liability of partners.
Liability of firm for wrongs.
Misapplication of money or property received for or in custody of firm.
No. 1 of 1897.
PARTNERSHIP
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 section 10 or section 11.
Improper employment of trust property for partnership purposes.
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
(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.
* As amended by Law Rev. Ord., 1923.
&
802
Liability of partners.
Liability of
firm for
wrongs.
Misapplica-
tion of money or property received for
No. 1 of 1897.
PARTNERSHIP.
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 or in custody apparent authority, receives the money or property of a third
person and misapplies it; and
of firm.
Liability for
(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 wrongs joint and also severally for everything for which the firm while he is a partner therein becomes liable under section 10 or section 11.
and several.
**
Improper employment of trust prop- erty for
13. If a partner, being a trustee, improperly employs trust property in the business or on the account of the partner- ship, no other partner is liable for the trust property to the partnership persons beneficially interested therein: Provided as follows:--
purposes.
(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.
* As amended by Law Rev. Ord., 1923.
No comments yet.
Private notes are available after approval.