Partnership Act 1963

If either or both of the following happens, a firm that is not an incorporated limited partnership is liable to make good the loss:

a partner in the firm, acting within the scope of the partner’s apparent authority, receives someone else’s money or property and misapplies it;

in the course of the firm’s business, the firm receives someone else’s money or property, and the money or property is misapplied by 1 or more of the partners while in the firm’s custody.

If either or both of the following happens, an incorporated limited partnership is liable to make good the loss:

a general partner in the partnership, acting within the scope of the general partner’s apparent authority, receives someone else’s money or property and misapplies it;

in the course of the partnership’s business, the partnership receives someone else’s money or property, and the money or property is misapplied by 1 or more of the general partners while in the partnership’s custody.

In this section:

someone else, in relation to a firm that is not an incorporated limited partnership or an incorporated limited partnership, does not include a partner in the partnership.