(1) The partnership is bound to make good the loss: (a) Where one partner acting within the scope of such partner’s apparent authority receives money or property of a third person and misapplies it; and (b) 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.
C.R.S. § 7-60-114
Partner’s breach of trust
Known as the Uniform Partnership Law
The act spans §§ 7–7 (50 sections).
Digitized from: Public.Law — Colorado Revised Statutes. Reproduced from public-domain Colorado statutes; confirm against the official source for the current text. Not legal advice.