What type of agency has the power to bind the principal?

The type of agency that has the power to bind the principal is known as General Agency. In a general agency relationship, the agent is granted broad authority to act on behalf of the principal across various transactions or activities within a particular scope. This means that the agent can engage in a number of acts that may legally bind the principal, such as managing a property or conducting business transactions.

For instance, a property management company acting as a general agent on behalf of a landlord has a range of powers to make decisions, collect rents, and manage tenants, effectively binding the landlord to those actions.

Universal agency, on the other hand, provides an agent with the authority to act on behalf of the principal in virtually all matters; however, it is less common and typically requires specially articulated agreements. Special agency refers to an agent who is authorized to act in a specific transaction or for a specific purpose. Express agency denotes an agreement provided directly through clear communication where the agent's obligations and powers are outlined, but being express does not inherently grant the ability to bind the principal in a broad capacity.

Thus, General Agency is uniquely positioned because it encompasses a wider scope of authority that permits the agent to make decisions and commitments that obligate the principal.