General

Explain the concept of mutual agency in partnership firms.

By User
On

Mutual agency is a legal relationship between all the partners which gives each partner the authority to take decisions and acts as an agent of the business.

Or we say each partner in the partnership is the agent and has authority or power to make decisions of the business that binds the partnership as a whole.

For example, If in a partnership firm a partner purchase a delivery van create the binding contract with all the partnership member

Final answer : Mutual agency is a legal relationship between all the partners which gives each partner the authority to take decisions and acts as an agent of the business.

Related Posts:

  1. What is the difference between void and voidable contract?
  2. What is the difference between agreement and contract?
  3. The business assets of an organisation amount to Rs.50,000 but the debts that remain unpaid are 80,000. What course of action can the creditors take if : (a) The organisation is a sole proprietorship firm? (b) The organisation is a partnership firm with Anthony and Akbar as partners? Which of the two, partners can the creditors approach for repayment of debt? Explain giving reasons.
  4. What is the difference between condition and warranty?
  5. Explain 5 Main differences between sip and a mutual fund?
  6. What is the gutter margin?