Mutual agency means
A) Creditors can apply their claims to partners' personal assets.
B) Partners are taxed on partnership withdrawals.
C) All partners must agree before the partnership can act.
D) The partnership has a limited life.
E) A partner can commit or bind the partnership in any contract within the scope of the partnership business.

Question

Quizplus · Accepted Answer

Mutual agency means that each partner has the power to commit or bind the partnership in any contract within the scope of partnership business, as long as it is done in the name of the partnership. This is known as the "principle of mutual agency." Therefore, choice E is the best answer.

Mutual Agency Means