Which type of agency gives the agent specific authority to act on behalf of the principal?

The type of agency that gives the agent specific authority to act on behalf of the principal is known as a Special Agency. In this arrangement, the agent is assigned to perform a particular task or to represent the principal in specific activities, such as managing a real estate transaction or handling a legal matter. This limited scope of power means that the agent can only act within the confines of the authority that has been explicitly granted by the principal.

Understanding the differences among various types of agencies is crucial. In a General Agency, for instance, the agent has broader authority to act on behalf of the principal across a range of activities, which is not confined to a specific task. Universal Agency goes even further by giving the agent the power to act on behalf of the principal in all matters, without limitations. Limited Agency generally refers to restrictions placed on the agent's authority but cannot be equated with the specific task-oriented characteristics of Special Agency. Thus, Special Agency is distinct because it centers on specific, defined actions, making it the correct response in this context.