An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships?

Question

Quizplus · Accepted Answer

The characteristic of mutual agency allows partners to act on behalf of the partnership and bind the partnership to contracts and agreements, hence an individual partner's signing of a contract falls under mutual agency. Unlimited liability refers to the partners being personally responsible for the debts and obligations of the partnership, limited life refers to the partnership coming to an end upon the withdrawal or death of a partner, and co-ownership of property refers to partners sharing ownership of assets and property used for the partnership.

An Individual Partner's Signing of a Contract to Buy Coffee