LAW OF AGENCY TEST BANK 2026
COMPLETE QUESTIONS AND SOLUTIONS
VERIFIED RESULTS
●● special agent.
Answer: an agent whose authority to act on behalf of the principal is
limited to a specific act or objective
●● general agency.
Answer: a form of agency relationship in which the principal is
responsible for the acts of their agent as long as the agent is acting
within the scope of their duties (Broker-Salesperson)
●● general agent.
Answer: an agent who is authorized to manage all of a principal's affairs
within certain specified areas; enjoys broader authority than that of a
special agent but less than that of a universal agent
●● universal agency.
Answer: a form of agency relationship in which agents have a very
broad and general scope of power to act on behalf of the principal; often
granted via a general power of attorney (Child-Parent)
, ●● universal agent.
Answer: an agent possessing a very broad and general scope of power to
act on behalf of the principal; authority often granted via a general
power of attorney
●● power of attorney.
Answer: a legal instrument used to confer the right of one individual to
act on behalf of another
●● Three Agency Types: Special, General, and Universal.
Answer: Special Agency (broker-client)
General Agency (salesperson-broker)
Universal Agency (child-parent as executor of will)
●● Special Agency = Limited Agency.
Answer: Special agency is the most limited type of agency relationship.
For this reason, some refer to special agency as limited agency instead.
Recap: Special agency = limited agency.
●● Special Agency = Non-Binding.
Answer: Since special agency relationships are limited, special agents
are unable to make decisions that would bind or obligate their principals.
COMPLETE QUESTIONS AND SOLUTIONS
VERIFIED RESULTS
●● special agent.
Answer: an agent whose authority to act on behalf of the principal is
limited to a specific act or objective
●● general agency.
Answer: a form of agency relationship in which the principal is
responsible for the acts of their agent as long as the agent is acting
within the scope of their duties (Broker-Salesperson)
●● general agent.
Answer: an agent who is authorized to manage all of a principal's affairs
within certain specified areas; enjoys broader authority than that of a
special agent but less than that of a universal agent
●● universal agency.
Answer: a form of agency relationship in which agents have a very
broad and general scope of power to act on behalf of the principal; often
granted via a general power of attorney (Child-Parent)
, ●● universal agent.
Answer: an agent possessing a very broad and general scope of power to
act on behalf of the principal; authority often granted via a general
power of attorney
●● power of attorney.
Answer: a legal instrument used to confer the right of one individual to
act on behalf of another
●● Three Agency Types: Special, General, and Universal.
Answer: Special Agency (broker-client)
General Agency (salesperson-broker)
Universal Agency (child-parent as executor of will)
●● Special Agency = Limited Agency.
Answer: Special agency is the most limited type of agency relationship.
For this reason, some refer to special agency as limited agency instead.
Recap: Special agency = limited agency.
●● Special Agency = Non-Binding.
Answer: Since special agency relationships are limited, special agents
are unable to make decisions that would bind or obligate their principals.
