Every partner is an agent of the partnership for the purpose of its business.Group of answer choicesTrueFalse

Analysis

1. Understanding Partnership: In a partnership, every partner typically has the authority to act on behalf of the partnership. This includes making decisions, entering contracts, and conducting business transactions.

2. Legal Implications: The legal principle that a partner acts as an agent for the partnership is foundational to partnership law. It means that any act undertaken by one partner in the scope of the partnership's business binds the partnership as a whole.

3. Exceptions: However, this agency relationship could vary based on specific agreements between partners. Certain actions may require the consent of other partners.

Conclusion

Given the general legal framework surrounding partnerships, the statement "Every partner is an agent of the partnership for the purpose of its business" is True. Each partner acts as an agent for the partnership, which is critical for the partnership's operational function.