Contracts

Under Massachusetts law, which type of agency relationship best describes a real estate agent who has received written authorization to execute contracts on behalf of the principal?

AGeneral agency
BSpecial (limited) agency
CPower of attorney✓ Correct
DUniversal agency

Explanation

A real estate agent typically has special (limited) agency authority. However, if the agent has been granted authority to execute contracts on the principal's behalf, this authorization may rise to a power of attorney level. In Massachusetts, only an attorney-in-fact with a signed power of attorney can contractually bind a principal.

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