TREC Law of Agency Practice Exam

A universal agent is someone who has the authority to act on behalf of a principal in any matter, essentially having unlimited authority to perform a wide range of tasks and make decisions as if they were the principal themselves. This type of agent is characterized by the ability to perform any transaction that the principal is capable of performing, such as managing finances, making contracts, or handling legal matters.

The correct choice indicates that having limited decision-making power does not align with the nature of a universal agent. A universal agent’s role inherently involves having expansive decision-making capabilities to act independently and efficiently in the principal's best interests. In contrast, other types of agents may have restrictions or limitations placed on their authority, but that is not the case for a universal agent, who is tasked with comprehensive representation.

This understanding highlights that universal agents enjoy broad powers, enabling them to handle various affairs without needing specific consent for every single action, a trait that distinguishes them from agents with limited authority.