Which of the following characteristics is highlighted in the statement: "He can bind other partners by his acts and also is bound by the acts of other partners with regard to the business of the firm."
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Mutual Agency
The statement describes that a partner can bind the firm by his acts and is also bound by the acts of other partners in relation to the business of the firm. This is the essence of the principle of mutual agency, which is a key characteristic of partnership.