What is the definition of universal agency?

Universal agency refers to a relationship in which an agent possesses broad authority to act on behalf of the principal in various situations. This type of agency allows the agent to make decisions and take actions across a wide range of areas without needing the principal's prior approval for each individual action. The agent acts as a complete extension of the principal, managing various affairs entirely, which distinguishes it from more limited forms of agency that may only cover specific tasks or responsibilities.

This definition aligns with the choice provided, illustrating the significant level of trust and authority a principal places in the agent within a universal agency relationship. Such arrangements facilitate comprehensive management of the principal's interests, allowing for efficiency and responsiveness in the execution of tasks that the principal would otherwise be responsible for personally.

In contrast, the other options do not pertain to the concept of universal agency, as they describe either financial regulations, legal issues related to contracts, or property valuation measures—none of which involve the scope of power given to an agent by a principal.