in which form of organisation is a trade agreement made by one owner binding on others?give reasons
In partnership there exists a feature of mutual agency, which states that the partnership may be carried on by all the partners or by any one of them on behalf of all. All the partners have equal right to participate in the activities of the business. There exists a principal and agent relationship among the partners of a firm. As an agent, a partner may bind the other partners by his/her acts and as a principal, a partner is himself/herself bound by the acts done by the other partners. This is known as mutual agency and is a very important feature of partnership firm without which it cannot be considered as partnership. Therefore, in partnership there is a trade agreement made by one owner binding on others.