Multiple choice

Mutual agency in relation to partnership is when business is carried on by all the partners or any one of them acting for all.

  1. True

  2. False

  3. Partly true

  4. Cannot say

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Mutual agency is the defining characteristic of partnership - each partner is both a principal and an agent for the other partners. The business can be carried on by all partners together OR by any one partner acting on behalf of all. This definition is core to partnership law.