Business Studies, asked by himanshusinghs4271, 1 year ago

What is meant by mutual agency in case of partnership?

Answers

Answered by animeshtiwari2902
16

Mutual agency is the right of all partners to represent the company's normal business operations and the authority to bind it to mutual contracts and agreements. In leman's terms, it is the authority given to a person doing business on behalf of the company, usually a business owner or partner.

Answered by harshamulangikar
2

Answer:

A partnership agreement where one partner can bind all partners in an agreement to partnership debts. This is also called unlimited liability

Explanation:

Mutual agency is the legal relationship between partners in a partnership where each partner has authorization powers and the ability to enter the partnership into business contracts. In other words, each partner in the partnership is an agent in the business and the authority to make business decisions that commit or bind the partnership, as a whole, to a business agreement with a third party or entity.

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