Which type of agent has the authority to execute a contract on behalf of another person?

The correct choice is the type of agent known as an attorney in fact. An attorney in fact is a person granted the authority to act on behalf of another person in legal or financial matters, which explicitly includes the execution of contracts. This authority is delineated through a legal document known as a power of attorney, which specifies the extent of the powers the attorney in fact holds.

In the context of real estate, this could mean signing documents and making decisions related to property transactions, which is crucial in facilitating sales or leasing agreements. The authority to execute contracts is a key characteristic that distinguishes an attorney in fact from other types of agents.

General agents and special agents serve different functions. A general agent typically has broad authority to act on behalf of a principal in a variety of transactions but does not necessarily include the specific authority to execute contracts without clear designation. Special agents, on the other hand, are limited to specific tasks and do not have the broad authority or the ability to execute contracts on behalf of the principal. A managing agent usually refers to someone who manages property or an operation but may not be granted powers to execute legal agreements without explicit permission.

Understanding these distinctions helps clarify the specific role of an attorney in fact and reinforces the significance of formal authority in