Final answer:
A special agency refers to a situation where an agent is authorized by a principal to carry out a specific task or transaction.
Step-by-step explanation:
When a principal authorizes an agent to perform a particular act or transaction, it is an example of a special agency. This form of agency relationship arises when an agent is given authority to act on behalf of the principal in specific, designated tasks or activities.
Unlike a general agency, where the agent has the power to perform a range of tasks related to a specific business, or a universal agency, which grants the agent the ability to perform nearly all acts that can be delegated legally, a special agency is focused on a single transaction or a defined series of transactions.