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Presentation Law 1

Presentation Law 1

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Published by Wan Dayangku Dianah

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Published by: Wan Dayangku Dianah on Sep 06, 2011
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04/13/2012

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MISAPPLICATION OF MONEY OR PROPERTY OF A THIRD PERSON

many transactions may take place on behalf of third parties by the firm.  Some partners may use the property or money for their own personal purpose . In some partnership business.  Certain documents of title necessary for certain matters or even money or other property may be deposited with the firm.

SECTION 13 OF PARTNERSHIP ACT 1961 PROVIDES THAT: .

namely: (a) where one partner. and (b) where a firm in the course of its business receives the money or property of a third person. receives the money or property of a third person and misapplies it. The firm is liable to make good the loss . acting within the scope of his apparent authority.In the following cases. and the money or property so received is misapplied by one or more of the partners while it is in custody of the firm.

The firm would be liable for the misapplication under the circumstances provided in Section 13 of the Partnership Act 1961 .

acting within the scope of his apparent authority.where one partner. receives the money or property of a third person and misapplies a partner received money or property from a third person to do an act which is within his apparent authority (authority that he would normally have in business of similar nature) and misapplies it .

where a firm in the course of its business receives the 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 custody of the firm a firm received money or property from a third person to do an act which is within ordinary course of the firm’s business and the misapplication must be made while the money or property was in the firm’s custody .

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