Which agency relationship includes duties like reasonable care and disclosure?

Which agency relationship includes duties like reasonable care and disclosure?

• A. General Agency
• B. Special Agency
• C. Implied Agency
• D. Universal Agency

Answer: (A)

The agency relationship characterized by duties such as reasonable care and disclosure is best identified as a general agency. In a general agency, an agent is authorized to perform a wide range of acts on behalf of the principal, granting them more extensive responsibilities. This includes the duty to act with reasonable care in their conduct and the obligation to disclose pertinent information that may affect the principal’s interests. In this context, reasonable care ensures that the agent takes appropriate steps to protect the principal’s interests and to act in a competent manner. Disclosure is critical in maintaining transparency between the agent and the principal, as it allows the principal to make informed decisions based on the information provided by the agent. Other types of agency relationships, such as special agency, implied agency, and universal agency, have different scopes of authority and responsibilities. Special agency typically limits the agent to a specific task or transaction without the broader responsibilities found in general agency. Implied agency arises from actions or circumstances rather than a formal agreement, lacking the explicit duties of a general agency. Universal agency grants an agent the authority to act in all matters on behalf of the principal but is less common and does not specifically emphasize reasonable care and disclosure as key duties. Thus, general agency is the correct context for understanding the duties of

The agency relationship characterized by duties such as reasonable care and disclosure is best identified as a general agency. In a general agency, an agent is authorized to perform a wide range of acts on behalf of the principal, granting them more extensive responsibilities. This includes the duty to act with reasonable care in their conduct and the obligation to disclose pertinent information that may affect the principal’s interests.

In this context, reasonable care ensures that the agent takes appropriate steps to protect the principal’s interests and to act in a competent manner. Disclosure is critical in maintaining transparency between the agent and the principal, as it allows the principal to make informed decisions based on the information provided by the agent.

Other types of agency relationships, such as special agency, implied agency, and universal agency, have different scopes of authority and responsibilities. Special agency typically limits the agent to a specific task or transaction without the broader responsibilities found in general agency. Implied agency arises from actions or circumstances rather than a formal agreement, lacking the explicit duties of a general agency. Universal agency grants an agent the authority to act in all matters on behalf of the principal but is less common and does not specifically emphasize reasonable care and disclosure as key duties. Thus, general agency is the correct context for understanding the duties of