mutual (adjective, mu-tu-al, /ˈmjuːtʃuəl/) agency (noun, agen-cy, /ˈeɪdʒənsi/)
Definition: is a legal relationship between a number of business partners, which gives each of them the authorization and the right to participate in all business operations, represent their company, and bind their business with the external agreements and contracts. In a mutual agency, each business partner acts as an agent of the company. Moreover, each member of mutual agency is responsible for their partners’ actions (only those that are related to their business). Mutual agency allows a business to grow and expand since it involves a number of partners who share the responsibilities and work more efficiently this way.
In a Sentence:
- Implementing the mutual agency allowed us to share both the rights and the responsibilities with the partners, which helped us strengthen the spirit of the staff and be more productive.
- Since each party has shared interests, the mutual agency relationship is helping us ensure the absence of conflicts in the workplace.
- If you want to make things easier for your company, you might want to get involved with a mutual agency binding.
Synonyms and related terms: legal agreement, business partnership, authority, business agent, company representative, business operation, partnership agreement
