Jul 02 2010

What is a power of attorney?

Category: Law

Answer:

A power of attorney is a legal document that grants one individual (agent) the authority to act on behalf or represent another (principal) in binding decisions. Powers of attorney are not limited to an individual practicing law; they can be bestowed upon anyone that is trusted by the principal. There are typically two forms of power of attorney.

General Power of Attorney – This category of power of attorney is often unlimited in capacity and duration, and allows the “agent” to act as a legal representative in relation to financial and legal matters until the designation is take away.

Specific Power of Attorney – This type of power attorney is specific to certain situations and will often limit the agent’s scope to particular transactions.


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