(a) Give the meaning of 'Implied Authority' and 'Mutual Agency' as characteristics of a partnership form of business organisation.

Question

Accepted Answer

Implied Authority: Any partner has the authority to act on behalf of the firm, and the firm stands bound by his acts done in the ordinary course of business. Mutual Agency: The business of partnership can be carried on by all the partners or any one of them acting for all. Every partner is both principal and agent of the other partners and of the firm. Each partner is liable for the acts performed by the other partners and can bind other partners and the firm by his acts done in the ordinary course of business.