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What is meant by ‘mutual agency’ in the case of partnership? - Accounts

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Question

What is meant by ‘mutual agency’ in the case of partnership?

Short Answer
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Solution

Mutual agency in a partnership means that each partner acts as both an agent and a principal. Each partner has the authority to bind the firm and other partners through their actions, and all partners are bound by the actions of any partner acting within the scope of the partnership business.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - SHORT ANSWER QUESTIONS [Page 1.126]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
SHORT ANSWER QUESTIONS | Q 2. | Page 1.126
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