wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

X and Y are partners of a banking firm. X receives certain securities from a customer for safe custody and puts in the Sate custody of the firm. Y disposes off those securities and applies the money for his own use. Is the firm liable for Ys act?

Open in App
Solution

Solution: Section to which the given problem relates: Section 27.
Decision: Yes.
Reason: The firm is liable for the misapplication of property by a partner if the property was in the custody of the firm
[Leading case: .Devaynes v. Noble].

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Let’s Settle
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon