What is the primary difference between a universal agent and a special agent?

The primary distinction between a universal agent and a special agent lies in the scope of authority granted to each type of agent. A universal agent is empowered to act on behalf of the principal in all matters, not just limited contexts. This could encompass various aspects of the principal's affairs, including financial, legal, and personal matters. In contrast, a special agent has authority that is restricted to specific tasks or transactions. This limited authority means that the special agent can only perform actions explicitly outlined in their agreement with the principal, making them more constrained in their capacity to act.

Understanding this difference is crucial because it highlights how agents can be utilized in different contexts, reflecting the needs of the principal based on the level of trust and the breadth of authority they wish to extend.