Which agent is restricted to a contract for a certain business purpose only?

The designation of a special agent refers to an individual who is authorized to act on behalf of a principal for a specific task or business purpose. This limited scope of authority differentiates a special agent from other types of agents, such as general agents or universal agents, who have broader responsibilities and powers.

For instance, if a property owner hires an agent to sell a particular property, that agent is functioning as a special agent because their authority is confined to this specific transaction. They do not have the authority to perform any action beyond the agreed-upon purpose, making their contract strictly tailored to that one business purpose.

In contrast, general agents manage broader operations and can act in many matters concerning the principal's affairs, while universal agents have the authority to act on behalf of the principal in all matters. A designated agent may handle specific tasks but does not have the same limitations inherent in the role of a special agent. Therefore, when considering the definition and scope of authority for various types of agents, the correct identification of a special agent is evident.