Jonah and Jaycee are partners. Which of the following illustrates the concept of mutual agency?(1 point)

Question

Responses

Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.
Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.

Jaycee must have permission from Jonah before engaging in any business transactions.
Jaycee must have permission from Jonah before engaging in any business transactions.

Neither partner is liable for damages that occurred while conducting business.
Neither partner is liable for damages that occurred while conducting business.

Two partners are equally liable for damages that occurred while conducting business.
Two partners are equally liable for damages that occurred while conducting business.

Answer 1

The correct response that illustrates the concept of mutual agency is:

Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.

This option demonstrates mutual agency because it shows that both partners have the authority to make decisions and engage in transactions on behalf of the partnership without needing permission from the other for each individual transaction.