Recovery from partnership for loss caused by wrongful act of partner

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. (Code 1981, § 14-8-14, enacted by Ga. L. 1984, p. 1439, § 1.) COMMENT Note to Uniform Partnership Act This section states rules for determining when the partnership is liable in connection with misapplication of funds of a third person by a partner. Prior Georgia Law There was no precisely comparable provision. Prior O.C.G.A. §§ 14-8-65 (partnership liability for partners’ fraud) and 14-8-66 (partnership liability for partners’ torts) were generally consistent. Official UPA This section is the same as the official version. Cross-References Apparent authority of partners: § 14-8-9(1). Partnership liability for acts of non-partner employees: § 14-8-4(c) (law of agency applies).