Which agency form makes the principal responsible for the acts of their agent as long as the agent acts within the scope of duties?

Which agency form makes the principal responsible for the acts of their agent as long as the agent acts within the scope of duties?

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

Answer: (C)

Having a general agency means the agent is authorized to handle a series of transactions or manage ongoing matters for the principal within a defined scope. Because the agent operates within that scope of duties, the principal is legally responsible for the acts and contracts the agent undertakes on the principal’s behalf. This is why general agency is the correct choice: it describes the broad authority that ties the principal to the agent’s actions as long as those actions stay within the granted duties. If the agent stays within that scope, the principal bears liability; if the agent goes beyond, liability typically doesn’t apply beyond that authorized scope. For contrast, a special agent is limited to a specific task, a universal agent has near-total authority, and limited agency describes more restricted authority.

Having a general agency means the agent is authorized to handle a series of transactions or manage ongoing matters for the principal within a defined scope. Because the agent operates within that scope of duties, the principal is legally responsible for the acts and contracts the agent undertakes on the principal’s behalf. This is why general agency is the correct choice: it describes the broad authority that ties the principal to the agent’s actions as long as those actions stay within the granted duties. If the agent stays within that scope, the principal bears liability; if the agent goes beyond, liability typically doesn’t apply beyond that authorized scope. For contrast, a special agent is limited to a specific task, a universal agent has near-total authority, and limited agency describes more restricted authority.