What is a characteristic of a special agency?

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A characteristic of a special agency is that it provides authorization to perform specific acts only. In the context of agency law, a special agency is created when a principal grants an agent the authority to perform a specific task or transaction on their behalf.

This means that the agent does not have the authority to engage in activities beyond what is explicitly defined in the agency agreement. For example, if a principal hires an agent to sell a particular piece of property, the agent's authority is limited strictly to that transaction. They cannot make decisions or take actions on behalf of the principal concerning unrelated matters.

This focused approach ensures that the principal retains control over their broader interests while providing the agent with the necessary authority to complete the assigned task effectively. Understanding the limits of authority in a special agency is crucial for both principals and agents to avoid any overreach and ensure appropriate representation in business dealings.

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