The partnership is bound to make good the loss:

1. (a) Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and

2. (b) 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.

   Formerly: Acts 1949, c.114, s.14.