Florida Bail Bonds Practice Exam

Which term refers to the ability of an agent to act on behalf of a principal?

1. Authority

2. Delegation

3. Negotiation

4. Representation

The correct answer is: Authority

The term that refers to the ability of an agent to act on behalf of a principal is authority. In the context of bail bonds and agency relationships, authority signifies the permission or power granted to the agent to make decisions, enter into contracts, and perform tasks related to the principal's interests. This authority can be explicit or implied, meaning it can be directly stated or inferred from the actions and context of the relationship. While delegation refers to the process of assigning responsibility or authority to another party, it does not inherently encompass the broader concept of an agent's ability to act. Negotiation involves discussing terms and conditions to reach an agreement, which is a specific activity but does not define the agent-principal relationship. Representation, while closely related, is more about the act of standing in for someone rather than the specified power or authority that enables that action. Thus, authority is the most accurate term for this context.