Saturday, May 17, 2014

What is the difference between a general agent and a special agent?

General v. Special Agent
·         General agent
o   Authorized to conduct a series of transactions involving continuity of service. Restatement (Second) of Agency § 3(1).
§  Does not require “fresh authorization” for each transaction
·         Special agent
o   Authorized to conduct a single transaction or series of transactions not involving continuity of service. Restatement (Second) of Agency § 3(2).
§  A special agent can only bind undisclosed principals to contracts made by the agent with a third party within the scope of the agent’s authority. (Third-parties are more limited in holding a principal liable for the actions of a special agent than the actions of a general agent)

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