What distinguishes a general agent from a special agent?

A general agent is characterized by having broad authority to act on behalf of the principal in multiple situations, which may encompass various tasks or activities. This contrasts with a special agent, who is appointed for a specific purpose or task, with limited authority restricted to that particular function. This distinction is foundational in the Law of Agency because it outlines the scope of an agent’s powers, which directly impacts how agents operate and the responsibilities they hold.

The first choice highlights this essential difference in authority—general agents manage ongoing relationships and transactions, whereas special agents are engaged only for a defined period or for discrete tasks. Therefore, the concept of authority is central to understanding the dynamics of these agency relationships.

Other choices present misunderstandings about the definitions of agents. For instance, the notion that a general agent is appointed for life or can negotiate prices is too generalized and does not accurately reflect the nature of agency relationships. Furthermore, the idea that general agents represent multiple principals is misleading since both types of agents can be designated to represent a single principal or another type of entity, depending on their designated role. Hence, the focus on the scope of authority in the first option is what sets it apart and is definitive in distinguishing between general and special agents.