Question

Explain the concept of mutual agency in partnership with suitable example.​

Answer 1

Answer:

Existence of mutual agency which is the cardinal principle of partnership law, is very much helpful in reaching a conclusion in this regard. Each partner carrying on the business is the principle as well as agent of others partners. So, the of one partner done on behalf of firm, binds all the partners. If the elements of mutual agency relationship exist between the parties consisting a group formed with a view to earn profits by running a business, a partnership may be deemed to exist.

Thanks and Regards,