A commercial property owner in Saskatoon wants their property manager, David, to find a tenant for a retail unit. The owner explicitly states in the management agreement that David is NOT permitted to sign any lease agreements on their behalf; rather, he must present all offers for the owner's review and signature. What type of agency relationship has been established regarding lease execution?

Question: A commercial property owner in Saskatoon wants their property manager, David, to find a tenant for a retail unit. The owner explicitly states in the management agreement that David is NOT permitted to sign any lease agreements on their behalf; rather, he must present all offers for the owner's review and signature. What type of agency relationship has been established regarding lease execution?

Answer options: ✅ Special agency, limited to finding a tenant and presenting offers.

• General agency, as he manages the overall property.
• Universal agency, as he acts for the principal in all matters.
• Apparent agency, based on how David presents himself to third parties.

Correct answer: Special agency, limited to finding a tenant and presenting offers.

Explanation: This scenario describes a special agency, where the agent (David) is authorized to perform a specific act or series of acts (finding a tenant, presenting offers) but is explicitly restricted from binding the principal (owner) in critical matters like signing leases. His authority is explicitly limited to specific tasks.