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

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

Answer: (C)

In agency relationships, the term describes someone hired to act for the principal in a specific transaction or for a particular purpose or class of work. This person has authority limited to that defined task or transaction and does not represent the principal beyond it. For example, a broker contracted to negotiate a single contract or a consultant brought on to complete a specific project operates as a special agent. Their power ends once the defined work is done, unless the principal grants broader authority. This distinguishes them from a general agent, who can handle all of the principal’s business of a certain kind or in a certain area, or from roles like a soliciting agent or an insurance agent, which imply different, broader or different duties not tied to a single transaction.