Mutual Agency - Mutual Agency Mutual agency means that each...

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Mutual Agency Mutual agency means that each partner acts on behalf of the partnership when engaging in partnership business. The act of any partner is binding on all other partners. This is true even when partners act beyond the scope of their authority, so long as the act appears to be appropriate for the partnership. For example, a partner of a grocery store who purchases a delivery truck creates a binding contract in the name of the partnership, even if the partnership agreement denies this authority. On the other hand, if a partner in a law firm purchased a snowmobile for the partnership, such an act would not be binding on the partnership. The purchase is clearly outside the scope of partnership business. Limited Life A partnership does not have unlimited life. It may be ended voluntarily at any time through the acceptance of a new partner or the withdrawal of a partner. A partnership may be ended involuntarily by the death or incapacity of a partner. Thus the life of a partnership is indefinite. Partnership dissolution
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Mutual Agency - Mutual Agency Mutual agency means that each...

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