Which term describes a person or entity employed to act for the principal in a specific transaction or for a particular purpose?

• A. General agent
• B. Soliciting agent
• C. Special agent
• D. Insurance agent

Answer: (C)

A special agent is someone authorized to act for the principal in a single transaction or for a specific purpose, with authority limited to that particular act. This fits because the role centers on a defined task rather than broad, ongoing duties. For example, a broker hired to complete the sale of a specific property or a consultant brought in to negotiate one contract operates only within that limited scope.

The other terms don’t match as precisely. A general agent has broad authority to handle many matters for the principal, not just one transaction. A soliciting agent focuses on obtaining business or applications and often lacks binding power for a specific deal. An insurance agent is a broad label for someone who sells or negotiates insurance, not inherently limited to a single transaction or purpose.