Which designation describes authority granted to act only in specific situations?

• A. Primary proxy
• B. General proxy
• C. Limited proxy
• D. Secondary proxy

Answer: (C)

Understanding how authority is scoped in a proxy is the main idea. A limited proxy is designed to give someone the power to act only in defined situations or for specific tasks. The authorization ends once those conditions are met or the task is completed, so the proxy holder can’t step in for unrelated matters. This restricted scope is what makes it different from a general proxy, which grants broad authority to handle many matters. Other terms imply different roles or broader power but don’t indicate restriction to particular situations, so they don’t fit the concept. In practice, choosing a limited proxy is appropriate when you want precise, situation-bound authority—such as allowing someone to make a single medical decision or sign documents for one specific transaction.