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As per the _________ partnership business can be carried on by all the partners or any one of the partners can act for all.
- a)Compulsory Registration of partnership
- b)Unlimited liability
- c)Limited liability
- d)Mutual Agency
Correct answer is option 'D'. Can you explain this answer?
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As per the _________ partnership business can be carried on by all the...
MUTUAL AGENCY IN A PARTNERSHIP
The fifth element in the definition of partnership provides that the business must be carried on by all the partners or any (one or more) of them acting for them all, i.e. there must be a mutual agency.
Thus, every partner, is both an agent and principal for himself and other partners, i.e. he can bind by his acts the other persons and can be bound by the acts of other partners. The importance of the element of mutual agency lies in the fact that it enables every partner to carry on the business on behalf of others.
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As per the _________ partnership business can be carried on by all the...
Mutual Agency in Partnership
Partnership is a type of business organization in which two or more persons come together to carry on a business with a view to earning profit. In a partnership, all partners work together to achieve the common goal of the business. One of the important features of partnership is mutual agency.
Mutual agency is a principle in partnership law that states that each partner can act as an agent of the other partners. This means that any partner can bind the partnership to a contract or agreement with a third party. In other words, any partner can enter into a contract on behalf of the partnership, and the partnership will be bound by that contract.
As per the mutual agency principle, partnership business can be carried on by all the partners or any one of the partners can act for all. This means that each partner has the authority to act on behalf of the partnership, and the actions of one partner are binding on all other partners.
For example, if Partner A enters into a contract with a supplier on behalf of the partnership, the partnership will be bound by that contract, and all partners will be responsible for fulfilling the obligations under the contract. Similarly, if Partner B makes a payment to a creditor on behalf of the partnership, the partnership will be liable for that payment.
In conclusion, mutual agency is a key feature of partnership that allows each partner to act as an agent of the partnership. This principle gives partners the flexibility to carry on business and make decisions on behalf of the partnership, and it is essential for the smooth functioning of partnership.
Partnership is a type of business organization in which two or more persons come together to carry on a business with a view to earning profit. In a partnership, all partners work together to achieve the common goal of the business. One of the important features of partnership is mutual agency.
Mutual agency is a principle in partnership law that states that each partner can act as an agent of the other partners. This means that any partner can bind the partnership to a contract or agreement with a third party. In other words, any partner can enter into a contract on behalf of the partnership, and the partnership will be bound by that contract.
As per the mutual agency principle, partnership business can be carried on by all the partners or any one of the partners can act for all. This means that each partner has the authority to act on behalf of the partnership, and the actions of one partner are binding on all other partners.
For example, if Partner A enters into a contract with a supplier on behalf of the partnership, the partnership will be bound by that contract, and all partners will be responsible for fulfilling the obligations under the contract. Similarly, if Partner B makes a payment to a creditor on behalf of the partnership, the partnership will be liable for that payment.
In conclusion, mutual agency is a key feature of partnership that allows each partner to act as an agent of the partnership. This principle gives partners the flexibility to carry on business and make decisions on behalf of the partnership, and it is essential for the smooth functioning of partnership.
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As per the _________ partnership business can be carried on by all the...
Every partner is an agent and owner of the partnership firm....business is carried on by all or any one of the the partners can act on behalf of all.... so partnership is therefore described as mutual agency or principle agency
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As per the _________ partnership business can be carried on by all the partners or any one of the partners can act for all.a)Compulsory Registration of partnershipb)Unlimited liabilityc)Limited liabilityd)Mutual AgencyCorrect answer is option 'D'. Can you explain this answer?
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