In a partnership,mutual agency means that ________.
A) the addition of a new partner does not dissolve the old partnership; there is a mutual exchange of ownership with the existing partners
B) every partner must contribute the same amount of capital
C) the agency problem between the principal and agents are mutual and are neutralized
D) any partner can bind the business to a contract within the scope of its regular business operations

Question

Quizplus · Accepted Answer

Mutual agency means that any partner can act as an agent and bind the entire partnership to a contract within the scope of its regular business operations. This means that the actions of one partner are legally binding on all the other partners, unless the partnership agreement specifically states otherwise.

In a Partnership,mutual Agency Means That ________