How does a general agent differ from a special agent?

A general agent is characterized by having broad authority to act on behalf of the principal in a wide range of matters, essentially managing ongoing business operations or various responsibilities related to the principal's affairs. This means that they are empowered to perform tasks that are necessary and typical within the scope of their agency relationship without requiring further consent from the principal each time a decision is made.

In contrast, a special agent operates under limited authority, often assigned to handle specific tasks or transactions for a principal. The special agent is typically engaged for a particular purpose, such as facilitating a single real estate transaction or executing a defined project. Because the authority of a special agent is restricted to the specific actions or decisions delegated to them, they cannot undertake any additional tasks outside of that predefined scope without violating their role.

This distinction is fundamental in understanding agency relationships, as it affects the expectations of both the agent and the principal, as well as the legal implications of the actions taken by each type of agent.