11Misapplication of money or property received for or in the custody of the firm

#### 11 Misapplication of money or property received for or in the custody of the firm 11 Misapplication of money or property received for or in the custody of the firm > > (1) In the following cases involving the partners of a firm other than an incorporated limited partnership, namely— > > > > > (a) Where one partner acting within the scope of the partner’s apparent authority receives the money or property of a third person and misapplies it, and > > > > > (b) When a firm in the course of its business receives 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. > > > (2) In the following cases involving general partners in an incorporated limited partnership— > > > > > (a) where one general partner acting within the scope of the general partner’s apparent authority receives the money or property of a third person and misapplies it, > > > > > (b) when an incorporated limited 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 one or more of the general partners while it is in the custody of the incorporated limited partnership, > > > > the incorporated limited partnership is liable to make good the loss. > > **s 11:** Am 1994 No 32, Sch 3; 2004 No 8, Sch 1 \[23\] \[24\].