Which of the following BEST describes the term mutual agency?

Question

Quizplus · Accepted Answer

Mutual agency refers to the authority of each partner in a partnership to act on behalf of the business and bind the other partners in contractual agreements. This means that each partner has equal authority and responsibility in running the partnership. Option A is incorrect as sharing profits equally is not related to mutual agency. Option C is incorrect as partners cannot withdraw from other partner's investment accounts. Option D is incorrect as mutual agency implies that all partners have the authority to contractually bind the partnership.

Which of the Following BEST Describes the Term Mutual Agency