Can an agent act independently from the principal?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

The correct answer reflects a fundamental principle of agency law, which states that an agent must act within the scope of the authority granted by the principal. This means that the agent is not free to act independently in any manner that they choose; their actions must align with the powers given to them by the principal.

The rationale behind this principle is to protect the interests of the principal. When an agent is appointed, the principal grants them specific authority to act on their behalf, which establishes a fiduciary relationship. If the agent steps outside of that authority, the principal may not be bound by the agent's actions, which could lead to liability or unexpected consequences.

In contrast, the other choices suggest circumstances where an agent could act independently. However, these notions do not align with the established rules of agency law. The agent’s actions must always remain within the limits defined by the principal to maintain the integrity of that relationship and ensure that the principal's interests are safeguarded.

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