25 - Partnership bound by partner's breach of trust. - New York Statutes

§ 25. Partnership bound by partner's breach of trust. The partnership is bound to make good the loss: 1. Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and 2. Where the partnership in the course of its business receives money or property of a third person and the money or property so received is misapplied by any partner while it is in the custody of the partnership.