In which agency relationship are agents limited to acts permitted by the principal?

Study for the Aceable Agent Finance Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Special agency means the agent’s authority is limited to specific acts the principal authorizes. The agent can perform only those defined tasks—typically tied to a single transaction or a narrowly defined purpose—and cannot bind the principal to anything outside that scope. For example, a listing agreement that designates an agent to sell a particular property confines the agent to actions related to that sale, like marketing the property and presenting offers, but not to other business or transactions. If the principal wants the agent to handle additional tasks, the agreement must be expanded to cover broader authority. By contrast, general agency grants authority to handle a broad range of activities within a particular business, and universal agency grants almost all matters the principal could handle. Franchise agency isn’t a standard form focused on scope of authority.