SECTION 10



 DUTY TO INDEMNIFY FOR LOSS CAUSED BY FRAUD (SECTION 10):

 Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.

Analysis of section 10: 

The partner, committing fraud in the conduct of the business of the firm, must make good the loss sustained by the firm by his misconduct and the amount so brought in the partnership should be divided between the partners.

An act of a partner imputable to the firm or the principles of agency, which is a fraud on his co-partners, entitles the co-partners, as between themselves, to throw the whole of the consequences upon him.

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