What is meant by the term "scope of duties" in an agency?

The term "scope of duties" in an agency context refers to the range of responsibilities an agent holds while representing the principal. This encompasses all the actions and decisions the agent is authorized to take on behalf of the principal, within the boundaries established by the agency agreement. Understanding the scope of duties is crucial because it defines the limits of the agent's authority and clarifies what is expected from them in fulfilling their role. If an agent acts beyond this scope, they may not be able to bind the principal and could potentially face legal consequences for overstepping their authority.

While the other options touch on aspects related to agency, they fail to capture the broader understanding encapsulated in the concept of "scope of duties." The extent of duties assigned by law is less about the practical responsibilities held by the agent and more about legal constraints. The geographical limits of agent representation can be relevant but are merely a subset of the broader responsibilities included in the scope of duties. Additionally, specific tasks outlined in a contract represent only a portion of what may be considered under the scope, as it can include implied duties as well. Thus, option B most accurately captures the essence of what "scope of duties" entails in an agency relationship.