Which type of agency relationship gives an agent the authority to sell property on behalf of 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 choice is the type of agency known as special agency. In a special agency relationship, the agent is granted authority to perform a specific task or to act for the principal in particular circumstances. This often includes the authority to sell property on behalf of the principal, which is typical in real estate transactions where an agent has been specifically authorized to list and sell a property for the owner.

This type of agency is narrower in scope compared to general agency and universal agency. A general agency would allow the agent to act on behalf of the principal in a broader range of activities. Universal agency involves a more comprehensive authority, where the agent can act in virtually all matters concerning the principal's interests without any limitations. Limited agency specifies certain restrictions but does not specifically provide for the sale of property.

Therefore, the emphasis on the agent's authority to sell property clearly identifies special agency as the correct response, since it denotes a focused task that the agent is empowered to carry out, in contrast to broader or more restricted forms of agency.

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