Can an agent delegate their authority to another person?

Prepare for the Law of Agency Test. Delve into multiple choice questions featuring hints and explanations. Sharpen your understanding of agency law and gear up for success!

The correct choice highlights a fundamental principle in agency law: an agent generally cannot delegate their authority to another person without the explicit permission of the principal. This is because the delegation of authority involves transferring the principal's trust and confidence in the agent to another party.

Agency relationships are typically built on the specific trust the principal places in the agent to act on their behalf, which is why delegation often requires the principal's consent. If the agent is allowed to delegate without permission, it could lead to situations where the principal's interests are compromised since they did not choose or sanction the new agent.

While there may be certain exceptions where an agent can delegate authority, such as when the act is routine or customary in nature, the best practice in most scenarios is to obtain the principal's explicit approval to uphold the integrity of the agency relationship.

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