Understanding the Scope of the Agency Relationship

The video tutorial explains the scope of agency relationships, focusing on the differences between general and limited agents. Limited agents have specific authority for particular tasks, while general agents possess broad authority similar to the principal. Examples include attorneys as limited agents and employees as general agents. The tutorial highlights how the scope of authority is defined and perceived by third parties.

What is the primary difference between a general agent and a limited agent?

• A general agent is hired for a specific task, while a limited agent is not.

• A limited agent has more authority than a general agent.

• A limited agent can act in any way the principal can, while a general agent cannot.

• A general agent has broad authority, while a limited agent has specific authority.

What defines the authority of a limited agent?

• Their authority is based on the agent's personal judgment.

• Their authority is defined by the principal's general instructions.

• Their authority is specific to a particular task or function.

• Their authority is unlimited and can be applied to any situation.

How can third-party perceptions affect a limited agent's authority?

• They can nullify the agent's authority entirely.

• They can restrict the agent's authority to only what is written.

• They have no impact on the agent's authority.

• They can expand the agent's authority beyond what is expressly stated.

Which of the following is an example of a general agent?

• A real estate agent hired for a home closing.

• A consultant hired for a specific project.

• An employee in a managerial position.

• An attorney representing a client in court.

In what way is the authority of a general agent typically characterized?

• It is broad and similar to the principal's own authority.

• It is defined by third-party perceptions.

• It is restricted to legal matters only.

• It is limited to specific tasks.