Mutual Agency Sample Clauses
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Mutual Agency the Act states that the business of the partnership must be carried on by all or any of them acting for all. Thus, there must be a relationship of mutual agency amongst all the partners.
Mutual Agency. This is the truest test of a partnership, it I the cardinal principle of a partnership. So if a partner is both the principle as well as an agent of the firm we can say that mutual agency exists. This means that the actions of any partner/s will bind all the other partners as well. So whenever there is a confusion about the existence of a partnership between people we check for the presence of a mutual agency. If such an agency exists between the parties who run a business together and share profits it will be deemed that a partnership exists. Kinds of Partnership The distinction between partnerships can be done on the basis of two criteria. They are as follows
1. With Regard to the Duration of the partnership – either Partnership at Will or Partnership for Fixed Duration
2. With regards to the extent of the business carried by the partnership – either General Partnership or Particular Partnership So let us take a look at these kinds of partnership in some detail.
Mutual Agency. The business of partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. Thus,
(i) Each partner is liable for acts
Mutual Agency. Every partner is an implied agent of the other partners and of the firm. Every partner is liable for acts performed by other partners on behalf of the firm.
Mutual Agency. If any Member receives any payment from a third party with respect to the tax liability of any other Member, the Member receiving such payment promptly shall remit the same to the Member entitled thereto.