In the legal relationship known as "agency":

Question

Quizplus · Accepted Answer

In the legal relationship known as "agency", a general agent has the authority to act in any way required by the principal's business. This means that the agent has broader authority to act on behalf of the principal compared to a special agent who is appointed for a limited purpose. Option A is incorrect because agents can have personal property interests in the principal's business, but they must be disclosed to the principal. Option B is incorrect because an agent may appoint subagents without seeking the principal's authorization, although the principal is responsible for the actions of subagents. Option D is incorrect because the agent is primarily liable for any wrongful actions taken by them and only secondarily liable if the principal is also found responsible. Option E is incorrect because both general and special agents can be appointed for business or personal purposes.

In the Legal Relationship Known as "Agency