Contract Glossary
Power of Attorney
Definition
A legal document that authorizes someone (the agent or attorney-in-fact) to act on another person's (the principal's) behalf. Powers of attorney can be broad (general) or limited to specific actions. They can be effective immediately or triggered only if the principal becomes incapacitated (springing).
In Practice
If you're traveling abroad and need someone to sign a contract or handle a real estate closing for you, a limited power of attorney lets them act on your behalf for that specific transaction. A durable power of attorney stays in effect even if you become incapacitated, which is why it's a key part of estate planning.
Common in these contract types
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