137. Limit on partner's right to indemnity.

137.     Limit on partner's right to indemnity.

The right of indemnity does not extend to joint transactions where no partnership subsists1. Nor does it extend to sums paid by a partner for which the partnership is not liable2, or to losses due to his own fraud or culpable negligence in the conduct of the partnership affairs3. On the contrary, he must compensate or indemnify the partnership against such losses4. The principle of indemnity does not extend to private loans from one partner to another, but is confined to partnership transactions5