Kinds of agents that can be classified from the point of view of extent of their authority are given below:
1. General agent:
A general agent is one who is employed to do all acts connected with a particular business or employment, e.g., a manager of a firm.
ADVERTISEMENTS:
He can bind the principal by doing anything which falls within the ordinary scope of that business, whether he is actually authorised for any particular act or not, is immaterial, provided the third party acts bona fide. Third parties may assume that such an agent has power to do all that which is usual for a general agent to do in the business concerned.
2. Special agent:
A special agent is one who is employed to do some particular act or represent his principal in some particular transaction, e.g., an agent employed to sell a motor car. As soon as the act is performed, the authority of such an agent comes to an end.
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ADVERTISEMENTS:
If a special agent does anything outside his authority, the principal is not bound by it, and third parties are not entitled to assume that the agent has unlimited powers. They should, therefore, make proper enquiry as to the extent of his authority before entering into any contract with him.
3. Universal agent:
A universal agent is said to be one whose authority is unlimited, i.e., who is authorised to do all the acts which the principal can lawfully do and can delegate. He enjoys extensive powers to transact every kind of business on behalf of his principal.