Partnership bound by partner's breach of trust
Known as the Uniform Partnership Act
The act spans §§ 23-4-1-1 to 23-4-1-9 (62 sections).
Applied in 2 court decisions — leading case Husted v. McCloud (1982)
Most recently applied in United States v. Harvey (July 1997)
Formerly: Acts 1949, c.114, s.14.
Sec. 14. The partnership is bound to make good the loss:
(a) Where one partner acting within the scope of his 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.
Official source: Indiana General Assembly. Reproduced from public-domain Indiana statutes; confirm against the official source for the current text. Not legal advice.