N.Y. Partnership Law Section 25
Partnership bound by partner’s breach of trust

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.

Source: Section 25 — Partnership bound by partner's breach of trust, https://www.­nysenate.­gov/legislation/laws/PTR/25 (updated Sep. 22, 2014; accessed Oct. 25, 2025).

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Verified:
Oct. 25, 2025

Last modified:
Sep. 22, 2014

§ 25. P’ship bound by partner's breach of trust's source at nysenate​.gov

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