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

Question

Responses

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.

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

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

Answer 1

The statement that best illustrates the concept of mutual agency is:

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

In a partnership, each partner acts as an agent of the partnership, and therefore, they have the authority to bind the partnership to contracts and are equally liable for the actions taken on behalf of the business.