A partnership is a relation between two or more persons gathered for a common object. Generally the object of the partnership is to gain profit from a business. A partnership can be general partnership of limited liability partnership. To indicate: the meaning of mutual agency when applied to partnership. A partnership is a relation between two or more persons gathered for a common object. Each partner of the partnership is principal as well agent for other partners. This relation between the partners is called mutual agency. As per the mutual agency concept, each partner is liable for the act done by other partner on their behalf. And each partner has capacity to bind other partners for the acts done by him.

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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Solution Summary: The author explains the meaning of mutual agency when applied to partnerships. Each partner is liable for the act done by other partners on their behalf.