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Question Type

Essay Multiple Choice

Question Source

All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

A partner receives a client's money within apparent authority. Instead of applying it as agreed, the partner misappropriates it before another partner learns of it. The firm argues that the innocent partners' lack of knowledge alone eliminates the firm's Article 1823 obligation. Which is correct?

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The partnership must make good the loss under the stipulated apparent-authority category; individual ignorance alone does not erase it. The money becomes the wrongdoer's capital automatically. The client must prove unanimous approval of theft. No partnership can owe money unless all partners personally touch it.

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