Section 26 of the Indian Partnership Act, 1932 deals with:

Section 26 makes the firm liable where, "by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners", loss or injury is caused to a third party or a penalty is incurred. Misapplication of money or property is dealt with in s.27, a partner's liability for acts of the firm in s.25 and a transferee's rights in s.29.