Rhode Island General Laws 7-12-25. 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 or her 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.
History of Section.
R.P.L. 1957, ch. 74, § 14.
Terms Used In Rhode Island General Laws 7-12-25
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
§ 7-12-25. [Repealed effective January 1, 2023.]
History of Section.
R.P.L. 1957, ch. 74, § 14; repealed by P.L. 2022, ch. 123, § 1, effective January 1, 2023; repealed by P.L. 2022, ch. 124, § 1, effective January 1, 2023.