LIMITED AGENT Meaning and
Definition
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A limited agent is an individual or entity who is legally authorized to act on behalf of another party in specific and defined capacities, with limitations placed on their authority. This term is commonly used in various legal and business contexts, such as real estate, law, and finance.
In the realm of real estate, a limited agent refers to a real estate agent or broker who is appointed by a client to represent them in a particular transaction, but with restricted powers and responsibilities. Unlike a general agent who can act on behalf of the principal in various matters, a limited agent is granted specific, limited authority to act solely within the defined scope of the agreement.
Similarly, in legal and financial contexts, a limited agent may be appointed to handle a specific task, such as signing certain documents or negotiating specific terms, while lacking the broad authority afforded to a general agent.
The role of a limited agent is typically established through a legally binding agreement or power of attorney, which clearly outlines the scope of their authority and any limitations. Such limitations safeguard the principal's interests by ensuring that the agent's actions are confined to the agreed-upon tasks and do not extend beyond their given authority.
Overall, a limited agent is an authorized representative acting on behalf of another party, but with restricted powers and responsibilities to ensure compliance with the agreed-upon limitations.
Common Misspellings for LIMITED AGENT
- kimited agent
- pimited agent
- oimited agent
- lumited agent
- ljmited agent
- lkmited agent
- lomited agent
- l9mited agent
- l8mited agent
- linited agent
- likited agent
- lijited agent
- limuted agent
- limjted agent
- limkted agent
- limoted agent
- lim9ted agent
- lim8ted agent
- limired agent
- limifed agent
Etymology of LIMITED AGENT
The word "limited" originated from the Latin word "limitare", meaning "to bound or restrict". It entered the English language in the late 14th century, referring to something that is restricted or confined.
The term "agent" comes from the Latin word "agens", which means "doing" or "performing". In English, it refers to a person or entity authorized to act on behalf of another in a legal or business context.
When combined, the phrase "limited agent" refers to an agent with restricted or specific authority to act on behalf of another. The term is commonly used in real estate and insurance industries, where limited agents have authority only for specific tasks or within certain limitations.
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