What distinguishes a general agent from a special agent?

What distinguishes a general agent from a special agent?

• A. A general agent acts for a specific act
• B. A general agent is limited to one business type
• C. A general agent can handle all business dealings of the principal
• D. A general agent requires written authorization for every action

Answer: (C)

The distinguishing characteristic of a general agent is that they have the authority to handle all business dealings of the principal, which encompasses a broad range of activities within specific parameters set by the principal. This contrasts with a special agent, who is typically limited to a particular act or a specific transaction. General agents might be responsible for overseeing various operations or functions, thus having a more flexible and expansive role compared to special agents, who operate based on particular, defined tasks. For example, a general agent could manage the overall business affairs of a company, while a special agent would only be authorized to negotiate a single contract or sell a specific piece of property. The other options mischaracterize the nature of a general agent. Specifically, the notions of acting for a specific act, being limited to one business type, or requiring written authorization for every action do not accurately reflect the broader scope and authority held by a general agent.

The distinguishing characteristic of a general agent is that they have the authority to handle all business dealings of the principal, which encompasses a broad range of activities within specific parameters set by the principal. This contrasts with a special agent, who is typically limited to a particular act or a specific transaction.

General agents might be responsible for overseeing various operations or functions, thus having a more flexible and expansive role compared to special agents, who operate based on particular, defined tasks. For example, a general agent could manage the overall business affairs of a company, while a special agent would only be authorized to negotiate a single contract or sell a specific piece of property.

The other options mischaracterize the nature of a general agent. Specifically, the notions of acting for a specific act, being limited to one business type, or requiring written authorization for every action do not accurately reflect the broader scope and authority held by a general agent.