Relation of Partners to Persons Dealing With the Partnership
Section 304-A:14
304-A:14 Partnership Bound by Partner's Breach of Trust. –
The partnership is bound to make good the loss:
I. Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and
II. 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.