Which agency form limits an agent's powers to acts permitted by the principal?

Which agency form limits an agent's powers to acts permitted by the principal?

• A. Special Agency
• B. General Agency
• C. Universal Agency
• D. Limited Agency

Answer: (A)

Special agency defines the relationship where the agent can perform only the specific tasks the principal approves. The agent’s power is tightly confined to those acts, and they cannot go beyond what the principal has authorized unless the principal changes or revokes the agreement. This keeps the principal in direct control over exactly what the agent is allowed to do. In contrast, a general agent can handle a broader range of activities within a particular business, and a universal agent can act almost entirely on the principal’s behalf. So, the form that limits the agent’s powers to acts permitted by the principal is special agency.

Special agency defines the relationship where the agent can perform only the specific tasks the principal approves. The agent’s power is tightly confined to those acts, and they cannot go beyond what the principal has authorized unless the principal changes or revokes the agreement. This keeps the principal in direct control over exactly what the agent is allowed to do. In contrast, a general agent can handle a broader range of activities within a particular business, and a universal agent can act almost entirely on the principal’s behalf. So, the form that limits the agent’s powers to acts permitted by the principal is special agency.