11 Misapplication of money or property received for or in custody of the firm.U.K.
In the following cases; namely—
(a)Where one partner acting within the scope of his apparent authority receives the money or property of a third person and misapplies it; and
(b)Where 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.