Definition

Noun: A formal legal document that grants one person (the agent or attorney-in-fact) the authority to act on behalf of another person (the principal or grantor) in legal, financial, or personal matters.

Usage

This term is used in legal and financial contexts to describe the document that creates an agency relationship. The scope of authority can be broad (general power of attorney) or limited to specific actions (special or limited power of attorney).

Examples

• Before her surgery, she signed a power of attorney so her sister could manage her bank accounts.
• The power of attorney authorized the agent to sell the property.
• The lawyer drafted a durable power of attorney that would remain valid if the principal became incapacitated.

Advanced Usage

• Durable Power of Attorney: A specific type that remains in effect even if the principal becomes mentally incompetent or incapacitated. This is crucial for long-term financial and healthcare planning.
• Springing Power of Attorney: A document that only becomes effective upon the occurrence of a specific future event, typically the principal's incapacitation.

Variants and Related Words

• POA: A common abbreviation for "power of attorney."
• Attorney-in-fact: The person who is authorized to act under the power of attorney. (Note: This is not necessarily a lawyer).
• Letter of Attorney: A less common, synonymous term.

Synonyms

• Authorization
• Legal authority
• Mandate (in some legal contexts)

Related Phrases

• To grant power of attorney: The act of giving this authority to someone.
  • He granted power of attorney to his business partner.
• To hold power of attorney: To be the authorized agent.
  • As she held his power of attorney, she was able to sign the contract.
• To act under power of attorney: To perform actions using the granted authority.
  • The accountant acted under power of attorney to file the tax returns.

Noun

1. a legal instrument authorizing someone to act as the grantor's agent