ACCA Applied Skills · Corporate and Business Law (Global) · Agency law
Orbit Ltd appoints Priya, a professional auctioneer, to sell a consignment of goods. She is authorised to deal only with a single, specific transaction and has no continuing authority beyond it. How is Priya best classified?
Priya is a special agent. Her authority is confined to one specific transaction, whereas a general agent acts across a range of transactions in a business and a universal agent can do everything the principal may lawfully delegate.
- AA general agent, because she is a professional in the trade
- BA special agent, because her authority is limited to a particular transactionCorrect
- CA universal agent, because she can bind Orbit Ltd in all matters
Explanation
A special agent is appointed for a particular transaction or limited purpose. A general agent has authority over a series of transactions or a type of business. A universal agent has authority to do all acts the principal can lawfully delegate, which is not the case here. Professional status does not make her general.
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