In agency terminology, what term describes a limited agent authorized to perform a single act?

• A. Special agent, special act
• B. General agent, broad authority
• C. Universal agent, all acts
• D. Employee agent, payroll duties

Answer: (A)

In agency terminology, the term describes a limited agent authorized to perform a single act is a special agent. This means the agent has narrow authority—they’re empowered to complete a specific task or transaction for the principal and cannot bind the principal to broader actions beyond that particular act. For example, a real estate broker hired to negotiate the sale of one property within a set timeframe is acting as a special agent; they handle that deal but don’t have authority over other matters of the principal's business.

General agents have broader authority to handle all matters within a particular business or area, while universal agents can perform virtually any act the principal could do. An employee agent is simply an employee acting on behalf of an employer, which doesn’t define the limited scope described here.