Certified Professional Contract Manager (CPCM) Practice Exam 2026 - Free CPCM Practice Questions and Study Guide

The role of a general agent is characterized by the authority to conduct a series of transactions for a principal with an ongoing relationship, rather than just a single transaction. This means that a general agent is empowered to act on behalf of the principal in a continuous capacity, handling multiple dealings or activities over time.

This ongoing relationship allows the general agent to make decisions and execute contracts on behalf of the principal within the scope of their authority, reflecting a trust-based relationship that goes beyond ad-hoc arrangements. This capability is essential in scenarios where a principal may need various services or must engage in several dealings consistently, such as in property management, commercial representation, or sales agencies.

The other choices illustrate different types of agency relationships that do not match the definition of a general agent. For instance, an agent for a one-time transaction describes a special agent, while an agent focused solely on personal transactions does not fulfill the broader obligations typical of a general agent's role. Likewise, limitations to verbal agreements pertain to specific instances and do not capture the comprehensive authority often granted to a general agent. Thus, the description of a general agent aligns perfectly with the ability to conduct various transactions over time within the parameters established by the principal.