Practicing Success
Practicing Success
CUET Preparation Today
| Assertion (A) - Each partner is liable for acts performed by other partners. Reason(R) - Every partner is principal as well as an agent of other partners and the firm. |
Both A and R are true. R is the correct explanation of A Both A and R are true, but R is not the correct explanation of A A is correct, but R is incorrect A is incorrect, but R is correct |
| Both A and R are true. R is the correct explanation of A |
| 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 performed by other partners, (ii) Each partner can bind other partners and the firm by his acts done in the ordinary course of business. |
