Which term describes a type of agency with limited authority?

The term that describes a type of agency with limited authority is "Special Agency." This type of agency occurs when an agent is authorized to act on behalf of a principal for a specific transaction or purpose. The agent's authority is restricted to the particulars of that special task, which differentiates it from other forms of agency.

In contrast, full agency implies that the agent has broad authority to act on behalf of the principal in various matters without restrictions. General agency grants the agent the authority to conduct a series of transactions of any kind on behalf of the principal but still encompasses a wider range of actions compared to special agency. Limited agency is sometimes used interchangeably with special agency, but special agency is the more recognized term within real estate.

Understanding the distinctions between these types of agency is crucial for recognizing the scope and limitations of the agent's powers, particularly in the real estate industry where transactions often necessitate clear boundaries of authority.