Which type of agent typically has a wider scope of authority?

Which type of agent typically has a wider scope of authority?

• A. Special agent
• B. Limited agent
• C. General agent
• D. Independent agent

Answer: (C)

A general agent typically has a wider scope of authority because they are authorized to conduct a variety of transactions on behalf of the principal, often in a specific business or personal area. This designation allows them to represent the principal in multiple areas of operation rather than being limited to specific duties. For instance, in real estate, a general agent can manage multiple properties, negotiate leases, and handle transactions without needing specific permission from the principal for each individual action. In contrast, a special agent is limited to a specific task or transaction, often with a defined endpoint. Limited agents have restricted duties and authority, pertaining to specific actions rather than broader responsibilities. Independent agents typically work independently rather than having a wide breadth of authority from one principal. Thus, in terms of the range of tasks and the extent of authority to act on behalf of a principal, general agents stand out as having greater power and responsibility.

A general agent typically has a wider scope of authority because they are authorized to conduct a variety of transactions on behalf of the principal, often in a specific business or personal area. This designation allows them to represent the principal in multiple areas of operation rather than being limited to specific duties. For instance, in real estate, a general agent can manage multiple properties, negotiate leases, and handle transactions without needing specific permission from the principal for each individual action.

In contrast, a special agent is limited to a specific task or transaction, often with a defined endpoint. Limited agents have restricted duties and authority, pertaining to specific actions rather than broader responsibilities. Independent agents typically work independently rather than having a wide breadth of authority from one principal. Thus, in terms of the range of tasks and the extent of authority to act on behalf of a principal, general agents stand out as having greater power and responsibility.