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Liability of Partners and the Firm for Torts

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LIABILITY OF PARTNERS AND THE FIRM FOR TORTS. A firm becomes liable for torts or wrongs committed by individual partners while acting within the scope of the business, in the same manner as a master is bound for his servant's tort, or a principal for that of his agent. If the tort is not com mitted while in the transaction of firm business, or within its scope, the mere fact of partnership relation will not render the firm liable. The firm is also liable for all damages resulting from negligent acts of its servants and agents, as are other principals. And for the fraud or misrepresentation of a partner in the transaction of firm business the firm is liable. But for tortious or criminal acts of a partner without the scope of the business, and not ratified or authorized by the firm, and for breaches of trust in regard to funds which have been entrusted to the partner as an individual and which have not come into the possession of the firm in the course of business, the firm is not liable.

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