What is a special agent?

A special agent is defined as an agent who is designated to act on behalf of a principal in a specific transaction or for a particular purpose. This type of agency is characterized by its limited scope, meaning that the special agent has authority only to perform specific tasks that the principal outlines.

In a typical scenario, a special agent may be involved in a singular event, such as selling a piece of property, making a particular investment, or negotiating a specific contract. This concentration on a specific task distinguishes special agents from general agents, who have broader authority to act on behalf of the principal in various ongoing dealings.

The concept of limited authority is crucial, as it sets the boundaries of the agent’s power and ensures that they operate within the scope defined by the principal. This focus on particular transactions exemplifies the nature of a special agency, where the responsibilities and authority are not open-ended or comprehensive, but rather tailored to a specific need.