The option that illustrates the concept of mutual agency is D. Jonah signs a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.
A Mutual agency simply means a legally binding relationship that is undertaken by business partners whereby each person can make a decision on behalf of the other person.
In such a case, whenever there's a decision to be taken maybe the purchase of goods or payment, a partner can make the decision without having to inform the other person.
Based on the illustrations above, since Jonah and Jaycee are partners, they can take decisions on behalf of each other.
In conclusion, Jonah can sign a purchase agreement with a supplier while Jaycee agrees to hire a marketing firm to drum up business.
