Page:United States Statutes at Large Volume 76.djvu/687

 76 STAT. ]

PUBLIC LAW 87-709-SEPT. 27, 1962

in the partnership, or any penalty is incurred, the partnership is liable therefor to the same extent as the partner so acting or omitting to act. SEC. 14. PARTNERSHIP BOUND BY PARTNER'S BREACH OF TRUST.—The

partnership is bound to make good the loss: (a) Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and (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. SEC. 15. NATURE OF PARTNER'S LIABILITY.—All partners are liable— (a) jointly and severally for everything chargeable to the partnership under sections 13 and 14, (b) jointly for all other debts and obligations of the partnership; but any partner may enter into a separate obligation to perform a partnership contract. SEC. 16. PARTNER BY ESTOPPEL.— (1) When a person, by words spoken or written or by conduct, represents himself, or consents to another representing him to any one, as a partner in an existing partnership or with one or more persons not actual partners, he is liable to any such person to whom such representation has been made, who has, on the faith of such representation, given credit to the actual or apparent partnership, and if he has made such representation or consented to its being made in a public manner he is liable to such person, whether the representation has or has not been made or communicated to such person so giving credit by or with the knowledge of the apparent partner making the representation or consenting to its being made. (a) When a partnership liability results, he is liable as though he were an actual member of the partnership. a" (b) When no partnership liability results, he is liable jointly with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately. (2) When a person has been thus represented to be a partner in an existing partnership, or with one or more persons not actual partners, he is an agent of the persons consenting to such representation to bind them to the same extent and in the same manner as though he were a partner in fact, with respect to persons who rely upon the representation. Where all the members of the existing partnership consent to the representation, a partnership act or obligation results; but in all other cases it is the joint act or obligation of the person acting and the persons consenting to the representation. SEC. 17. LIABILITY OF INCOMING PARTNER.—A person admitted as a partner into an existing partnership is liable for all the obligations of the partnership arisins: before his admission as though he had been a partner when such obligations were incurred, except that this liability shall be satisfied only out of partnership property. PART

IV

RELATIONS OF PARTNERS TO ONE ANOTHER SEC. 18. RULES I^ETERMTNING RKJHTS AND DUTIES OF PARFNERS.—

The rights and duties of the partners in relation to the partnership shall be determined, subject to any agreement between them, by the following rules: (a) Each partner shall be repaid his contributions, whether by way of capital or advances to the partnership property and share

639

�