What authority does a general agent have compared to a special agent?

Prepare for the Maine Real Estate Sales Agent Test. Use flashcards, and multiple-choice questions with structured hints and detailed explanations. Excel in your exam preparation!

A general agent has the authority to act on behalf of a principal in a broad, ongoing capacity, which is represented best by the concept of an ongoing business relationship. This type of agent is entrusted to manage a range of tasks and obligations that fall within the scope of their authority, which can be quite comprehensive. They can make decisions and take actions that are consistent with the agreed-upon activities without needing specific permission for each individual act.

In contrast, a special agent is typically limited to specific tasks and responsibilities, often for a defined period or for a specific transaction. This means that their authority is narrower and does not extend beyond the particular assignment given to them.

Understanding this distinction helps clarify the nature of the relationship and the level of authority that each type of agent possesses, emphasizing the broader responsibilities that are characteristic of a general agent.

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