What are the differences between a general agent and a special agent?

A general agent and a special agent are two types of agents that play a role in California business transaction law. The differences between the two types of agents can be significant, depending on the context of the transaction. A general agent is a representative who is authorized to act on behalf of the principal in the daily activities associated with the business relationship. This agent is given broad powers, with the ability to make decisions on behalf of the principal without prior authorization. A special agent, on the other hand, is granted more limited power. This agent is specifically authorized to act on behalf of the principal in a limited context. For example, the special agent might be granted authority to purchase supplies or enter into contracts with specific vendors. The principal may need to approve specific tasks or transactions prior to their execution. In general, a general agent is a more powerful role than a special agent. The principal is often less involved in making day to day decisions with a general agent, whereas a special agent requires more input and oversight from the principal. The distinction between the two is important to understand when entering into business transactions in California.

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What are the differences between a general agent and a special agent?

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